WOODLAND HILLS, CA-The owner of the 448,000-sf WellPoint office tower in Woodland Hills has refinanced the 13-story property with a $120-million loan that Newmark Realty Capital tailored to accommodate what Newmark calls "a unique lease." George Mitsanas of the Los Angeles office of Newmark Realty, who arranged the financing for the WellPoint tower, tells GlobeSt.com that the WellPoint lease is unusual in that it provides for "varying income streams" during the course of the lease.
The refinancing, a 13-year fixed-rate loan through Deutsche Bank Mortgage Capital, is structured to accommodate those variations and other lease terms, with Newmark as the full-service correspondent for the loan throughout the term. Mitsanas tells GlobeSt.com that the borrower, TA Warner Associates LLC, refinanced primarily to take advantage of lower interest rates and also to tap into some equity.
Mitsanas explains that the borrower was two years into a 10-year loan, but with falling interest rates, the new loan provides a more favorable capital structure. "With the drop in interest rates, it made economic sense to recast the loan," Mitsanas says.
The property, in the midst of the Warner Center complex, is 100% leased to WellPoint, a publicly traded health benefits provider that is an independent licensee of the Blue Cross Blue Shield Association. The office tower was completed in 1979.
Mitsanas points out that the building, at 21555 Oxnard St., sits amidst more than two million sf of other offices, restaurants, shopping and entertainment in the Warner Center master-planned complex. With the closing of the $120-million financing for the WellPoint building, Newmark principals have financed more than $600 million for properties in the Warner Center complex.
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