Buyers Secure Red Hill Financing

In the 15901 Red Hill deal, Red Hill Partners LP purchased a 30,426-sf office building from Redhill Investments LLC of Bellevue, WA for $5.1 million. Redhill Investments LLC then used the proceeds of the sale toward the $6 million purchase of a 44,513-sf office building at 15991 Red Hill Ave. from Touchstone Investments.

In the 15901 transaction, buyer Red Hill Partners secured a $3.7 million acquisition loan, through a correspondent lender, on a 10-year term with a 25-year amortization schedule. This floating rate loan is priced over the 12 MAT, with a lifetime cap of 7.5%.In the 15991 Red Hill transaction, Redhill Investments LLC secured a $4 million loan from NorthMarq's direct lending fund and combined the $4 million loan with the proceeds of the sale of 15901 Red Hill to acquire the 15991 building. The interest-only, two-year loan floats over Libor.

Schwartz notes that when Red Hill Investments LLC sought to sell the 15901 building, it still owed the balance on its original loan for the property, and that loan carried a significant yield maintenance prepayment penalty. Schwartz negotiated with the lender to waive the prepayment penalty. That same lender then provided a new loan for Red Hill Partners LP to buy the 15901 property.