NorthMarq Capital has arranged a bridge loan of $33,998,400 for Corporate Pointe, a five-building portfolio located at 1, 3, 5, 7, and 9 Corporate Park in Irvine, California. Joe Giordani and John Marshall, both VPs in the firm’s Los Angeles regional office, arranged the financing on behalf of Kelemen Caamano Investments.
Corporate Pointe is located within walking distance of the District and consists of 160,499 square feet of office space originally built in 1986. The sponsor plans to improve the asset through upgrades to the building systems, bathrooms, common areas, and exteriors and will likely add some amenities to the office park as well, such as a coffee shop and outdoor break areas. KCI will also be implementing a new marketing a leasing strategy to retain existing tenants and attract new tenants to the property.
This transaction is KCI’s tenth office repositioning in Orange County. According to Tibor Kelemen, a founder and principal at KCI, “KCI has a long track record of repositioning office space in Orange County — we aim to add value to regional and local tenants through creative yet affordable design and class-leading asset and property management. We believe we’re delivering excellent risk-adjusted returns to our investors as class-A and creative-office construction yields continue to compress and underperform market absorption.”
NorthMarq identified several best-in-class lenders for the project, including life-insurance companies, pension funds, debt funds, and banks. Ultimately, the borrower chose an institutional non-bank lender with cheap, flexible foreign capital.
The $33,998,000 non-recourse loan at 70 percent of total project cost features future funding for tenant improvements, leasing commissions, and capital expenditures. The five-year loan features full term interest-only, flexible prepayment and the option for individual parcel releases.
“The lender was able to offer tailored terms for a best-in-class sponsor on a light lift that had a unique ownership structure, the need for individual releases, and a three-week close,” says NorthMarq’s Giordani. “Lender bids were extremely tight, and we’re happy NorthMarq was able to offer market-clearing pricing that crushed both bank and traditional debt-fund pricing.”
by Carrie Rossenfeld