LOS ANGELES-Pheasant West LLC has received $18.9 million to refinance a 200,000-square-foot office building located at 7974 UW Health Court in Middleton, WI, through a loan secured by Los Angeles-based real estate investment banking firm George Smith Partners. The University of Wisconsin Medical Foundation has been the property's sole occupier since it was built in 2007.

The 10-year loan has an 8-year, fixed interest rate of 4.65% with a 20-year amortization. The borrower was able to secure the loan due to the presence of a single, long-term tenant. “A long-standing single-tenant provides steady income for a property owner through the life of a loan.  As a result, lenders feel more secure with regard to loan repayment,” says George Smith Partners VP Steve Stein.

Pheasant West LLC is not a traditional single-owner, but is structured as a 74 member LLP. This was an unusual hurdle for George Smith Partners to overcome. “With this ownership structure, no single owner in the LLP holds a substantial interest in the ownership entity,” Stein says. “This structure can be a concern for potential lenders. To remedy this, we drew upon our extensive network of financiers to identify a lender who was familiar with this ownership structure, and had lent to companies with this structure in the past.”

In an earlier story, GlobeSt.com reported that the Hudson Team of George Elkins Mortgage Banking Co. secured financing or two CMBS loans totaling $71.7 million for two retail centers in Lacey, WA, and Fullerton, CA.