PLEASANT HILL, CA-DJM Capital Partners of San Jose hasrefinanced its 137,232-square-foot Ellinwood Office Complex herewith a $24.5-million CMBS loan that provides permanent financing,according to George Smith Partners of Century City, CA, whicharranged the financing. The property is a three-building complexadjacent to the 680 Freeway at 300, 400 and 500 Ellinwood Way thatis 100% leased to Contra Costa County for 18 years.

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GSP principal and managing director Steve Bram refers to thefinancing as "our first ‘CMBS 2.0’ loan." Bram explains that GSPhas "coined the phrase CMBS 2.0 to describe the return of CMBSlending after the financial meltdown of 2008-2009.” The DJM loan isfor five years, non-recourse, at a 5.6% interest rate.

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Bram notes that he and David Pascale, a senior vice president atGSP, originally arranged the acquisition bridge financing for theproperty in 2006 when DJM bought it. At the time, the property wascompletely vacant.

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“Now, four years later, the property is fully stabilized and wehave put permanent financing on the property which allows theborrower to pay off the bridge loan," Bram says. He notes that theGSP team marketed the request to over 30 lenders "in this toughfinancing market" to find the right lender.

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DJM, which owns 2.7 million square feet of commercial space,bought the property for $22 million, according to a GlobeSt.comreport at the time, which said that the San Josecompany planned to invest $16.5 million in renovations. ContraCosta County signed a 20-year, $57-million lease for the propertyin 2008 on behalf of its Employee Human Services Division. Theproperty is a 9.5-acre development is part of a master-plannedcommunity that includes restaurants, retail and housing, hikingtrails, parks and JFK University.

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