CHANDLER, AZ—A 523,673-square-foot institutional-grade office park located at the intersection of Highways 101 and 202 has just received refinancing to the tune of $93 million. The property, developed and owned by the Douglas Allred Company, is comprised of six, two-story, class-A office buildings located in a master-planned business park with office, hospitality and restaurant uses.
The office park is 100% leased to six tenants including Healthways Inc., Infineon Technologies and Infusion Software Inc. These buildings were constructed on a spec basis between 2009 and 2014, and offer a 5/1,000 parking ratio.
The transaction was structured with a 10-year term with three years interest-only, followed by a 30-year amortization schedule. Eric Flyckt, managing director of NorthMarq Capital's San Diego office, secured the loan and NorthMarq arranged the financing for the borrower through its relationship with Citi Group. NorthMarq has previously secured agency, life company and other CMBS financings for the borrower.
Flyckt tells GlobeSt.com: "The loan proceeds were used to pay off the construction loan. One of the buildings is currently vacant; however, it is 100% leased to a tenant whose lease commences in January 2017. The lender structured the loan with a holdback for tenant improvements, leasing commissions and rent payments until the tenant's lease commences. Additionally, the loan was structured to allow for the construction of a future parking deck if ever needed. The Douglas Allred Company is a full-service real estate firm which has developed and acquired more than 5,800,000 square feet of office, industrial, and retail space; more than 6,300 apartments, condominiums and single-family homes; and a few hundred acres of business park land. The Douglas Allred Company owns adjacent land for future development."
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
