SAN PEDRO, CA-The owner of a 290,000-square-foot class A office building here now has a new $19.5 million loan despite the obstacles to refinancing that were presented when the building’s major tenant gave notice, in the middle of loan negotiations, that it planned to leave the building. At the time the tenant gave notice, the Marcus & Millichap Capital Corp. team of Michael Derk, Jake Roberts and Anita Paryani was halfway through what looked like it would be a simple long-term refinancing of the property because of its quality, strong ownership and creditworthy tenants.

But when the tenant gave notice, which meant that the building would be 66% vacant, “It absolutely changed the game plan,” Derk tells The Marcus & Millichap team had been negotiating with long-term lenders but had to start all over and “go for a bridge lender because no long-term lender would do the deal with 66% vacancy,” explains Derk, who is a senior director/vice president in the firm’s Long Beach office. Roberts and Paryani are senior director/vice president and senior director, respectively, in the West Los Angeles office.

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