X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

(To read more on the debt and equity markets, click here.)

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.

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
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

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

  • Free unlimited access to GlobeSt.com'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 ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.