CBRE Arranges $158M Financing for Koll on Office Industrial Park in Irvine
The Koll Co. has refinanced Airport Business Center, a 1.2 million-square-foot office/flex industrial park in Irvine, Calif., to the tune of $158 million. The real estate company relied on CBRE Group Inc.’s Capital Markets team to arrange the financing for the Southern California asset, and the commercial real estate services firm found a most willing provider in Brookfield Asset Management.
“The lending community responded extremely well; there was fierce competition for the deal,” Sharon Kline, executive vice president with CBRE, told Commercial Property Executive. And what brought lenders running, Kline added, was both “the size of the transaction and the opportunity for higher pricing on the mezzanine piece.”
Located in Orange County in Southern California, Airport Business Center has been in the Koll family since day one; the company developed the 68-building property between 1968 and 1979, and has owned and managed it continuously ever since. The business center consists predominantly of 1,000 to 3,000-square-foot incubator spaces that frequently serve as a home for start-up companies in growth mode.
Brookfield supplied Koll with a five-year, fixed-rate, full-term interest only loan featuring an all-in interest rate in the low 5-percent range. The financing allowed the borrower to replace an existing loan that carried a remaining balance of $154.4 million and had been originally provided by Allstate and ING Investment Management in 2008.
Commercial Property Executive