Friday, November 22, 2013

NBS Financial Arranges $35M in Refinancing for Von Karman Plaza

Norris,Beggs & Simpson Financial Services President Ken Griggs and Finance Officer Paddy Ryan have arranged a $35 million refinance loan for  Von Karman Plaza, a 241,539 sf retail property in Irvine, California.
Harsch Investment Corp. is the underlying borrower of Von Karman, LLC and ING Investment Management, out of Atlanta, is the lender.
Prior to the refinancing, the Von Karman Plaza was in the midst of repositioning itself due to several retailers vacating large blocks of space, including Sam’s Club. After major renovations and reintroduction of the property to the market, the borrower was able to bring in new anchor tenants like Wal-Mart, filling up a majority of the property’s vacancy. At the time of funding, a block of unoccupied space remained, but ING had confidence in filling the outstanding occupancy and was able to structure a solution. The owner seized the opportunity to refinance, which then would help fund the final renovations.

 “Even though there was a considerable vacancy, ING Investment Management was attracted to the borrower’s efforts to reposition the property and its leasing efforts to date,” Griggs said. “ING was confident that the borrower would fill the remaining vacancy.”
Griggs and Ryan were able to structure a favorable refinance locking in a low interest rate for a 10-year term and 30-year amortization with an attractive level of proceeds to meet the borrower’s needs.

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