More Institutional Sponsors Refinance Rather Than Sell
Refinancing of $126.2 million was secured for Dublin Corporate Center, a 447,771-square-foot complex, on behalf of a joint venture between funds managed by Oaktree Capital Management LP and Hines.
DUBLIN, CA—Refinancing to the tune of $126.2 million has been secured for Dublin Corporate Center, a 447,771-square-foot class-A office complex located at 4120, 4140 and 4160 Dublin Blvd. The corporate center is currently 83% leased.
CBRE’s Brad Zampa, Mike Walker and Megan Woodring secured the refinancing on behalf of ownership, a joint venture between funds managed by Oaktree Capital Management LP and Hines.
“Since purchasing Dublin Corporate Center in 2017, ownership drastically improved the campus by investing more than $3 million in capital improvements, creating a 9,700-square-foot state-of-the-art super-tenant amenity facility called the HUB,” said Zampa. “After this transformation, Dublin Corporate Center is now the highest-quality class-A campus in the East Bay area’s Dublin/Pleasanton submarket. This was an extremely compelling financing opportunity of scale, which was reflected in the deep pool of lenders that pursued the refinance.”
Dublin Corporate Center is situated on 19 acres and includes three four-story buildings with expansive window lines for views of the Dublin/Pleasanton market. The property offers tenants 1,000 feet of frontage along the Interstate 580 freeway with building and pylon signage opportunities. Additionally, the campus benefits from proximity to several walkable amenities, including numerous dining and shopping options.
“More and more institutional sponsors are deciding to refinance rather than sell their projects as today’s large loan bridge market is offering tighter spreads, extending out loan terms and cashing out borrowers where they have added significant value,” Zampa tells GlobeSt.com.
The Tri-Valley office market has been one of the fastest-growing regions in the entire Bay Area. Tenant activity in the market has increased significantly in recent years from both tech and traditional office users and fundamentals reflect that. Vacancy rates are at 18-year historic lows–5.6% as of third quarter 2019–while rental rates have increased more than 28% since the beginning of 2014, according to CBRE.