Metro LA Data Center Scores Major Refi
- Sep 16, 2016
Irvine, Calif.—HFF recently secured a $62.5 million refinancing for Irvine Crossings, a 395,673-square-foot, single-story data center and industrial property near Irvine’s Airport.
Working on behalf of the borrower, Menlo Equities, HFF placed a five-year, interest only, fixed-rate financing with Deutsche Bank. The HFF debt placement team representing the borrower was led by Senior Managing Director Kevin MacKenzie and Associate Jamie Kline.
Irvine Crossings is situated on 21.2 acres at 17871 Von Karman Ave. and 17836 Gillette Ave., one block north of the intersection of Von Karman Avenue and Main Street. It is less than one mile away from John Wayne Airport and two blocks from Interstate 405. Six other data centers are located nearby, making this area within Irvine one of the most desirable areas for data centers in Southern California, following downtown Los Angeles and El Segundo.
The building was renovated in 2000 and partially converted to a powered shell data center in 2013. A data center operator and an internet technology company occupy the entire facility.
“Data center usage provides a unique set of challenges in obtaining aggressive financing, but we were able to utilize the superior location, and best-in-class sponsorship, in order to drive the market and obtain an optimal combination of a low-rate, full-term, interest-only and desired leverage,” said MacKenzie in prepared remarks.
Photo courtesy of HFF