SANTA ANA, CA-The new owners of Griffin Towers have refinancedthe 547,000-square-foot office complex for $62 million in a dealarranged by the Debt & Equity Finance Group of CB RichardEllis. The new financing comes near the same time as CBRE brokeredthe $22.25 million sale of the 98,551-square-foot building 999 Town& Country Road office building in the City of Orange to LosAngeles-based REIT Kilroy Realty.

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Lincoln Property Company and Angelo Gordon & Co. bought theGriffin Towers complex of two 12-story office towers for $90million in March of this year. According to CBRE’s Chapin Hunt, whohandled the recent refinancing on behalf of the joint ventureownership, the new financing is with New York State TeachersRetirement System, a New York State pension fund. Theseven-year deal includes $50 million in initial funding on day one,and structured future funding of $12 million for costs associatedwith lease-up and stabilization.

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Despite the continuing challenges facing the Orange Countyoffice leasing market, the financing opportunity for Griffin Towerscreated a highly competitive bid process, according to Hunt. “Webegan the sale and debt marketing processes simultaneously to allowthe borrower ample time to survey the re-emerging debt capital basein what continues to be a challenging yet improving debt market,"Hunt said. Given the current weaker fundamentals in Orange County,CBRE and the borrower were "very pleased" with the new financing,he said.

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The sale of Griffin Towers to Lincoln Property Company andAngelo Gordon in March represents one of the largest office salesin Southern California thus far in 2010. The lender, RBS,sold the property in conjunction with the owner, Los Angeles-basedMPG Office Trust. In addition to Hunt, CBRE’s Kevin Shannonand Ken White of the Torrance office, and Bob Smith, Paul Jones andKaren Scholte of the Newport Beach office handled the transactionon behalf the sellers. Following the sale, CBRE was awardedthe exclusive leasing assignment for the property. Dean Chandlerand Justin Hill are handling the listing.

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In the sale of 999 Town & Country Road, CBRE reports thatthe property is 100% leased to a single tenant, Aecom, a globalprovider of professional technical and management support servicesto a broad range of markets, including transportation, facilities,environmental, energy, water and government. Aecom, which recentlycompleted extensive renovations and improvements to the building,occupies it on a lease that expires in 2018 and includes twofive-year options to extend.

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The seller was not disclosed, but sources indicate it was TARealty of Boston. Both the buyer and the seller were represented byCBRE’s Shannon, Smith, Jones, Scholte and Gary Stache.

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The total site area of the property is six acres, with excessland entitled for future medical office development. The property’slocation is close to regional medical centers including St.Joseph’s and Children’s hospitals.

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