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.
