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EL SEGUNDO, CA-Continental Development Corp. has secured a $40.5-million first mortgage to refinance the company’s 190,000-sf Continental Park Terrace, according to Sonnenblick-Eichner Co. of Santa Monica, which arranged the financing. The class A office project is part of the company’s 2.5-million-sf Continental Park development.Continental’s new mortgage is a 10-year fixed rate loan that carries an interest rate of less than 5.5% with a 30-year amortization schedule. There is an interest only period for the first few years of the loan, which was placed with a US-based financial services company/investment bank.Principal David Sonnenblick says that today’s low interest rate environment enabled the borrower to strike a deal on the new loan that more than offset the cost of prepaying its existing high interest rate mortgage. Continental also realized “a tremendous amount of built-up equity in the asset,” Sonnenblick says.Sonnenblick-Eichner principal Patrick Brown adds that the location, amenities, institutional quality of the asset and quality tenants, along with barriers to entry, generated interest from a number of prospective lenders. The deal that the borrower chose provided “maximum proceeds paired with minimal contingencies,” Brown says.Continental Park comprises more than 2.5 million sf of office, hotel, retail, restaurant and entertainment venues. Among these are a 16-screen Pacific Theatre; restaurants including P.F. Changs, McCormick & Schmick’s, and Fleming’s Prime Steakhouse; a Spectrum health club and a 122-room Summerfield Suites Hotel.

In addition to Continental’s holdings, the company’s development is served by two shopping centers, the Manhattan Village Mall and a full-service Marriott Hotel with a nine-hole executive golf course.

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