LOS ANGELES-The owner of the 187,000-sf Los Angeles Media Tech Center has secured a $25-million first mortgage that is designed to allow maximum flexibility for pre-payment in the event of a sale of the individual buildings at the center, according to Sonnenblick-Eichner Co. The property includes four office/warehouse buildings at the intersection of the Glendale and Golden State freeways just north of Downtown Los Angeles.
David Sonnenblick, a principal of Sonnenblick-Eichner, reports that the five-year fixed-rate financing was provided by a Wall Street investment bank and was priced in the low 100-basis-points range over the corresponding treasury. The loan is interest only for the entire term.
The four buildings are 100% leased to tenants including JP Morgan, Fidelity National Title, the Los Angeles Unified School District and Penthouse Media Group. According to Sonnenblick, the deal provides for partial paydowns of the loan, which will in turn provide the borrower with maximum flexibility for pre-payment in the event of a sale of the individual buildings. The greater flexibility is a key to executing the borrower's business plan over the next five years, Sonnenblick says.
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