CARLSBAD, CA-The Allen Group has landed an $11.2-million loan, which it is using to refinance its Kelly Corporate Center office asset in the city.The financing is a fixed-rate, non-recourse loan with a 30-year amortization and a 10-year term, according to Jamie Dick of Burnham Real Estate’s Capital Markets Group, who arranged the loan for the borrower through Deutsche Bank of New York. “With the improving office market in Carlsbad, lenders are being more aggressive in their lending and underwriting practices,” he tells Built by the Allen Group in 2002, Kelly Corporate Center is located at 6005 Hidden Valley Rd. Encompassing 71,478 sf, the two-story facility is currently around 95% occupied, according to Dick, who says major tenants here include Washington Mutual, Burnham Real Estate and Countrywide Mortgage. The Allen Group plans to hold the property as an investment.”It is a great time to be a borrower in San Diego, given the low interest rates and the very strong commercial real estate market here,” Dick tells “Everyone wants to lend money in San Diego.” New research points to an improving office market for San Diego County, with researchers at the Encino-based brokerage Marcus & Millichap predicting a decrease in vacancy levels and an increase in rental rates by year-end. According to the recently released data, office vacancy is expected to decrease 50 basis points by the end of 2004, wrapping up the year at 11.9%. As a result of the decreasing vacancy levels, rental rates have been on the upswing, with the Marcus & Millichap report pointing out that “effective rents are poised to move up by 4% this year, due to improving market conditions.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.



Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.