NEWPORT BEACH, CA-The privately held owner of the Mariner's Mile mixed-use office, retail and boat slip complex along the waterfront here has reduced interest costs for the complex with a $10.1 million loan via NorthMarq Capital to refinance the property. Rob Hervey, EVP and regional manager in the Newport Beach office of NorthMarq Capital, tells GlobeSt.com that the borrower, the Murrel Co., sought the refinancing to lock in a lower rate.
The Mariner's Mile complex, which Hervey describes as one of the few such properties of its type in Southern California, is a combination of 47,000 sf of office and retail space along 300 feet of Newport Bay frontage with 2,000 linear feet of boat slip space. The property is located at 2429-2507 W. Coast Highway, about two miles west of the Fashion Island shopping and dining area.
Hervey, who arranged the financing, calls the office and retail complex a trophy property and "one of the few fee simple, waterfront commercial properties in Southern California." Many of the other seaside developments in the Southland are held on ground leases, with the underlying land owned by cities, counties or investors.
The Mariner's Mile property is composed of five buildings on 1.65 acres. The complex, which Murrel has owned since 1998, features frontage along West Coast Highway in addition to its frontage along the Newport Bay.
The new financing for the complex is a 10-year loan at a fixed competitive rate. The waterfront development typically maintains an occupancy of 100%, high even for Orange County, where the office and retail vacancy rates have remained in the low single digits for several years.
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