Fortune Business Park is a recently completed, seven-building project of approximately 157,000 sf. White arranged the financing for a joint venture between Master Development Corp. and GE Capital. The $12 million is a three-year, fixed-rate, interest-only loan through Aetna Life Insurance Co.
The Fortune Business Park loan is permanent financing for a 100% vacantindustrial park, net of tenant improvement and commission holdbacks. Theborrower is a repeat client of Aetna, which won the business againsttraditional bank lending sources on terms and pricing. HFF will servicethe loan.
White says that the loan structure permitted the joint venture to acquire the project at an attractive price and execute its leasing strategy without having to assume a construction loan and then obtain a permanent loan. Fortune Business Park occupies an infill location at 13668 Valley Blvd. in the City of Industry.
In the San Fernando Valley financing, Brennan reports that Van Nuys-based West Coast Investments secured the $2.6 million loan from Independence Bank of Newport Beach to refinance the Vallarta Grocery at 1101 W. Avenue I in Lancaster. The deal closed at a loan-to-value ratio of 75%, based strictly on NOI, but NOI was severely under market, Brennan notes.
The 30-year, 6.38% loan amortizes over 30 years. The single-story, 52,000-sf grocery store was built in 1959 and is 100% occupied.
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