Admiral Capital Secures $41M Refi for 2 Office Assets

The private equity firm will apply some of the proceeds to preparing the Class A buildings in Phoenix and San Diego for safe reopening.
The Madison. Image courtesy of Admiral Capital Group

Admiral Capital Group landed $41.3 million in refinancing loans, part of which will go towards reopening its two office buildings in Phoenix and San Diego. JLL’s Brent Bowman secured the financing for the two properties, The Madison and Balboa Executive Center.

Located at 5343 and 5353 N. 16th St. in Phoenix, The Madison is a two-building Class A office property totaling 177,312 square feet. The Madison underwent a two-year renovation that completed in 2018 and now includes a 40-person training facility, a conference center and an on-site deli.

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Admiral Capital’s San Diego office, The Balboa Executive Center, is located at 9444 Balboa Ave. The five-story building spans 120,992 square feet of Class A office space and was also recently renovated. Balboa’s capital improvement plan was completed in 2015 and the building now includes a fully renovated lobby, a gym and outdoor seating. Combined, the two offices were 88 percent leased at the time of financing, according to Admiral Capital.

Reopening Renovations

The company will be using a portion of the refinance loans to upgrade the offices’ common areas and amenities. With workplaces getting ready to reopen amidst the coronavirus pandemic, Admiral Capital is taking steps across its portfolio to ensure that its tenants can return to a sanitary workplace. For The Madison and Balboa, the properties will get more indoor and outdoor amenities that can be used as collaborative spaces or break areas, while also incorporating elements of social distancing.

Admiral purchased Balboa and The Madison in summer 2018 on behalf of its investment platform A2R. The two offices were the first investment for A2R, which was created in 2018 to focus on acquiring well-leased Class A office properties in growing markets across the U.S.