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 GlobeSt.com. 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 GlobeSt.com. “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.”

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