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NEWPORT BEACH, CA-The Orange County office of Berkadia Commercial Mortgage LLC has closed a $42-million loan with Morgan Stanley for the Scripps Research Institute in La Jolla, CA. The loan was used to refinance an existing mortgage on the property and was designed to accommodate various unique lease structures.
Berkadia’s VP Jackson Cloak and Morgan Stanley worked with the principals of the borrowing entity, which has not been identified to GlobeSt.com, to originate the fixed-rate financing. Two main characteristics of the property that made it desirable to Berkadia and Morgan Stanley were its location near the renowned Torrey Pines life-sciences submarket and its physical characteristics, giving the property high barriers to entry with excellent tenant qualities.
“Berkadia has a long-standing partnership with the borrower principals, and we were able to successfully accommodate lease provisions that required unique deal-structure capabilities,” said Cloak in a prepared statement. “Berkadia’s ability to service the loan and the borrower relationship were major components in originating and closing the transaction.”
The La Jolla campus provides more than 1 million square feet of space on 35 acres of land next to the Pacific Ocean. Located in close proximity to the University of California, San Diego, the campus is situated with easy access to San Diego’s scientific community, which includes the Salk Institute for Biological Studies and Sanford-Burnham Medical Research Institute, as well as a concentration of some 300 biotechnology companies.
As GlobeSt.com previously reported, in November 2012 Berkadia’s San Francisco office arranged a $30-million loan to refinance the Shops at River Park (Phase I), part of a 1-million-square-foot shopping and entertainment complex in Fresno, CA. SVP Mitch Thurston and VP Andy Ahlers worked with the borrower, River Park Properties II, to secure the 10-year, fixed-rate loan.
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