(Save the dates: RealShare Apartments East comes to the Hyatt Regency in Miami, FL, on February 26, and RealShare Los Angeles comes to the Hyatt Regency Century Plaza in Los Angeles, CA, on March 27.)
LOS ANGELES-Real estate capital-advisory firm Johnson Capital has arranged $54 million in permanent financing secured by a six-building industrial warehouse/distribution portfolio located in Los Angeles County on behalf of a privately held entity. The properties comprise a total of 882,000 square feet and are leased to seven tenants.
The buildings in the portfolio are a mix of older and newer structures built between 1971 and 2009 and are located within 3 miles of each other; each is in a planned industrial-park setting.
The loan, funded by a major insurance company, has a fixed interest rate of 3.79% for the fully amortizing 1% prepayment structure after the 15th year of the loan term, as well as partial release and substitution provisions. Based in Los Angeles County, the borrower is the developer and original owner of each of the six buildings.
“The security included a variety of quality buildings providing the lender with a well-balanced pool of collateral and staggered lease terns, which helped the loan pricing and overall loan structure,” said Kevin Burkhalter, SVP in Johnson Capital’s local office, in a prepared statement. “Warehouse/distribution buildings in Los Angeles County continue to be sought-after by both debt and equity providers due to such factors as our dominant ports, the large population base and a mature, in-fill market with a consistently low vacancy rate.”
Interestingly, as GlobeSt.com reported in December 2012, as part of the company’s capital-recycling strategy, Kilroy Realty Corp. has sold its entire industrial portfolio and two small office projects to two institutional buyers for $355 million. The real estate practice team of Allen Matkins served as representation for Kilroy on the sale of the 44 properties, which were sold in two tranches and total approximately 3.7 million square feet in aggregate.
Also, as GlobeSt.com reported last week, Sherwin Aryeh of Johnson Capital‘s Century City, CA, office, has originated $10.5 million secured by a premier 20-unit luxury multifamily property in West Los Angeles. The non-recourse debt, which has a loan-to-value ratio of 70%, was used to recapitalize current debt for the property owner, a Los Angeles-based multifamily developer. It was provided by an exclusive Johnson Capital correspondent lender, and carries a fixed rate for five years with a 30-year amortization.
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