Search
 

Lenders Are Vying for Office Redevelopment Deals

The bridge lending space has become extremely aggressive in the last 18 months, and it is chasing office redevelopment deals.

“Today’s market is nearly unrecognizable from a year ago,” John Marshall and Joe Giordani, VPs at Northmarq Capital, say about the bridge lending market. The duo recently funded a $33.9 million bridge loan for an office redevelopment project of 1, 3, 5, 7, 9 Corporate Park in Irvine on behalf of borrower Kelemen Caamano Investments. The deal received interest from life insurance companies and pension funds to debt funds and banks as well as non-bank lenders, which the borrower ultimately chose for the deal. Marshall and Giordani say that the bridge lending market has taken off in the last 18 months, and office redevelopment projects are an attractive deal for the group. We sat down with Marshall and Giordani to talk about the demand for office redevelopment projects, this recent deal, and how the bridge lending market has changed.

GlobeSt.com: You were able to identify several lending groups for this project. In general, what is lender demand/appetite like for redevelopment office projects in Orange County?

Joe Giordani: Even with rising interest rates, there is so much global capital chasing yield that bridge pricing and liquidity has become extremely aggressive in the past 18 months. Today’s market is nearly unrecognizable from a year ago, with a number of new bridge lenders that have popped up. All of these lenders need to write loans, and don’t have the luxury of waiting.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Kelsi Maree Borland

Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.

More from this author

Recommended Stories

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.