Continental Partners Secures Financing for SoCal Property
- Mar 13, 2017
Los Angeles—Continental Partners has secured $19.2 million in owner-user financing for a 256,000-square-foot industrial property in Moorpark, Calif. The sponsor, a manufacturer of electronic devices, had requested a high loan-to-cost, long-term fixed-rate product to finance the acquisition for its new headquarters in Ventura County.
Continental Partners Director Zalmi Klyne arranged for the financing. Klyne explained that the firm faced challenges related to SBA financing and occupancy rate. First of all, the sponsor had already maxed out his SBA financing allowance by withdrawing two SBA 504 loans. Secondly, the sponsor was relocating from a facility representing only about 20 percent of the size of the new one, when the owner occupancy rate required for many owner-user financing products was at least 51 percent.
Continental Partners secured a $13.7 million first trust deed from an international portfolio lender and an additional $5.5 million second trust deed through a small business green program by committing to install solar panels. The first trust deed is a 25-year fixed rate, 60 percent loan-to-cost fully amortized loan, priced at 4.53 percent. The second trust deed is a 20-year fully amortized loan which floats until the green energy upgrades are completed.
“With the potential repeal of Dodd-Frank, which could serve as a catalyst for financial deregulation, lenders will have greater flexibility and more opportunities to originate loans, making now a good time to finance commercial assets,” said Klyne in prepared remarks.
The 1994 property is located at 709 Science Drive in Moorpark, Calif., just off SR-118.
Image courtesy of Continental Partners