HIALEAH, FL-The 67,000-sf, seven-story Palm Springs Center office building at 1840 West 49th St. here has received $7.75 million in permanent financing to refinance existing debt.

Locally based Aztec Group Inc. managing director Jason Shapiro and managing director Boaz Ashbel represented the borrower in the transaction. The fixed rate loan term is for 10 years. The loan was provided by a US-based life insurance company.

Ashbel tells GlobeSt.com that the building is in the process of being renovated, but the renovations are being financed out-of-pocket. The renovations have brought the occupancy level of the building to 100% with gross rental rates ranging from $22 to $25 per sf.

"Leasing conditions are very tight in the Hialeah market but it's mainly B and C class properties," he says. "This is one of the most desirable properties in the submarket due to its location."

Shapiro says one of the initial challenges in financing this asset was the fact that there are more than 100 tenants within the building. In addition, the majority of the tenants have one-year, annual leases. Lenders typically look for properties that have larger tenants with multi-year leases.

"With a renovation/modernization/improvement plan in place, and an impeccable location, tremendous traffic counts and high visibility, the initial concerns about numerous smaller tenants were quickly mitigated," Ashbel says.