SOURCE: Sonnenblick-Eichner Company

February 27, 2007 11:00 ET

Sonnenblick-Eichner Company Arranges $52,000,000 of Permanent Financing for Continental Development Corporation

LOS ANGELES, CA -- (MARKET WIRE) -- February 27, 2007 -- Sonnenblick-Eichner Company announced today that it has arranged $52,000,000 of first mortgage financing for four buildings owned by Continental Development Corporation in Continental Park, a 2.7 million square foot, mixed-use business park in the prestigious Los Angeles South Bay submarket.

Sonnenblick-Eichner arranged two separate mortgages; the first one was a $35,000,000 first mortgage on 1700 Rosecrans, a three building asset that is 100% leased to Northrop Grumman, Office Depot and Warner Brothers. The second financing was a $17,000,000 first mortgage on 2200/2250 Park Place, a 100,000 square foot state-of-the-art health club that is 100% leased to Spectrum Club South Bay, which is also the training facility for the NBA's Los Angeles Clippers.

The loans were priced at a spread of less than 100 basis points over the 10-year Treasury, equating to an all-in rate of approximately 5.5%. Both 10-year financings were provided by a Wall Street investment bank and include a period of interest only payments followed by a 30-year amortization schedule.

David Sonnenblick, Principal of Sonnenblick-Eichner Company, commented, "Although the borrower had a significant defeasance premium on the existing mortgage, which encumbered both properties, it was more than offset by the equity realized from the refinancing and the savings in debt service payments. We were able to negotiate around short term lease maturities and the special-use nature of the health club."

About Sonnenblick-Eichner Company

Sonnenblick-Eichner Company (www.sonneich.com) is a Los Angeles-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.

Contact Information

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    Debi Fidler
    310-286-7700

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