Beverly Hills, CA, June 22, 2016 – Sonnenblick-Eichner Company has arranged a $12.4 million fixed-rate loan for the refinancing of a fully-occupied 63,406 square-foot office/flex building located in Emeryville, CA.
The 10-year non-recourse loan was funded by an international investment bank at an interest rate of less than 4.5%.
The property securing the loan is 100% leased to Ex’Pression College of Digital Arts, a fully accredited college with degree programs that include Sound Arts, Interactive Audio, Graphic Design & Motion and Digital Filmmaking.
“We were able to generate significant lender interest despite the complexities associated with a Tenant-in-Common structureг,” said Tina Derderian, Managing Director of Sonnenblick-Eichner Company. “Although a for-profit private college tenant presented some challenges, we were able to overcome lender concerns by illustrating the strength and depth of the Emeryville creative office market,” she said.
Located just across the Bay from downtown San Francisco, the property benefits from easy access to San Francisco, Oakland, Berkeley and Walnut Creek. University of California Berkeley is just three miles to the northwest. Emeryville is a vibrant, creative office market and the corporate home to companies including Pixar Animation Studios, Peetеs Coffee & Tea, Jamba Juice and Clif Bar.
“The real estate capital markets have rebounded nicely since the beginning of the year when uncertainty caused credit spreads to widen significantly”, said David Sonnenblick, Principal of Sonnenblick-Eichner Company. “The recent flight to quality in the treasury markets and increasing demand for CMBS paper has resulted in both a reduction in the pricing indices and the tightening of credit spreads, resulting in an overall lower cost of capital for borrowers of commercial real estate loans,” he said.
About Sonnenblick-Eichner Company
Sonnenblick-Eichner Company (www.sonneich.com) is a Beverly Hills-based real estate investment banking firm that specializes in arranging structured finance for acquisition, construction and permanent loans, interim and mezzanine financing as well as joint-venture equity transactions. The company is recognized for its expertise in marketing institutional real estate for sale and providing capital for all product types including retail, office, hospitality, industrial, and multifamily properties.