Contact Information: Media Contact: Debi Fidler 310-286-7700
Sonnenblick-Eichner Company Arranges $52,000,000 of Permanent Financing for Continental Development Corporation
| Source: Sonnenblick-Eichner Company
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.
