$25M Deals Include CMBS Recapitalization

NEWPORT BEACH, CA-Conrad Management has acquired a 49,886-square-foot office project here for $13.6 million, and an 87,943-square-foot mixed-use property called Plaza Empresa in Rancho Santa Margarita has been refinanced for $11.5 million, according to Holliday Fenoglio Fowler, which negotiated both of the deals.

In the office project sale, Conrad Management bought two office buildings at 3355 and 3388 Via Lido in Newport Beach. The 3388 Via Lido property is a five-story office building that features 110 linear feet of bay frontage with boat slips on the Newport/Lido Channel. The 3355 Via Lido property has three stories of office space and is located across the street from the channel with water views.

HFF senior managing director Ryan Gallagher and director Kelly Rohfeld along with local market specialist John Pomer of Grubb and Ellis led the investment sales team on behalf of the seller. Gallagher says that Conrad and its consultant, Marshall Development, "have created an exceptional vision for the 3388 Via Lido building." Explains Gallagher, "The building’s five-story height is well above today’s current zoning code, and from the top floors you have ocean and bay views. This project will be the catalyst for the regentrification of Lido Marina Village.”

In the $11.5 million refinancing for Plaza Empresa, HFF director Chris Vittetoe comments that the firm "recapitalized a matured CMBS loan due to the high barriers to entry of Rancho Santa Margarita and strong sponsorship.” Vittetoe and HFF senior managing director Paul Brindley represented the borrower , whose adjustable-rate, non-recourse loan was provided by Prime Finance, a commercial real estate finance company with offices in San Francisco, Chicago and New York.

Plaza Empresa is situated on 7.17 acres at 29821-29941 Aventura near the 241 Toll Road. The property was renovated in 1997 and includes five single-story buildings that are 70% leased to primarily service retail, restaurants and medical office tenants.