CBRE Capital Markets Secures More Than $24.2 Million in Financing for the McCabe Way Office Complex in Irvine, CA

San Francisco, CA – December 7, 2015 – CBRE Capital Markets’ Debt & Structured Finance team has arranged $24.2 million in non-recourse financing for the acquisition of a 109,506-square-foot office complex in Irvine, California.

Michael Walker and Brad Zampa of CBRE’s San Francisco office, arranged the three-year, floating-rate financing, with two one-year extensions, on behalf of the client, an entity owned and managed by Swift Real Estate Partners. The balance sheet financing provides capital towards the purchase of the asset as well as capital for the modernization of the building and tenant improvements. The loan was priced well under 3% and was originated by a West Coast-based bank.

Mr. Walker commented: ”Swift is a leader in the field of executing value-add acquisition and rehab projects such as this all along the West Coast. I have no doubt their experienced team will leverage their market intel and the momentum in the Irvine market to materialize their strategy for the repositioning of the McCabe buildings.”

Located at 2405, 2445 & 2485 McCabe Way, Irvine, CA, the office complex consists of three two-story and four-story buildings. The property is extremely well positioned along the I-405 freeway; just a few miles from the John Wayne airport. The area, which is commonly referred to as the Airport submarket, is currently experiencing a renaissance of leasing, construction and economic activity.

According to CBRE Research, The Orange County office market has performed very well over the last year and is expected to continue its momentum going forward. The overall vacancy was 9.6% as of the Q3 2015 and is expected to decrease over the next 12 months. The overall asking lease rate experienced the largest year-over-year increase since 2007 (11.8% in Q3 2015) and is projected to grow exponentially over the next 12 months (approximately $2.49 per sq. ft. NNN – an increase of 9.2%) by Q2 2016.

About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2014 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.

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