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.

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.

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.