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ENCINITAS, CA-Taking advantage of the continuing low interest rates, a joint venture of Los Angeles-based Zelman Development Co. and Carlsbad-based the Carltas Co. has refinanced Encinitas Ranch Town Center. The JV refinanced the 503,000-sf property for $64.3 million.In the deal, the Los Angeles office of Holliday Fenoglio Fowler LP arranged the financing with a long-term focus, according to HFF senior managing director Paul Brindley. “Most deals we see look at 10-year terms,” Brindley tells Globest.com. “The joint venture partners were looking to lock in for a very long time.”Brindley secured a 20-year, 5.38% fixed-rate loan through New York Life Investment Management. The refinancing is interest-only for the first five years and then has a 30-year amortization schedule.”It was a straight refinancing to take advantage of the low rates,” Brindley says. He adds that he’s seeing a strong trend of refinancing deals over the past year, with many owners looking to refinance debt that matures from two to five years out. “It pencils out to take the prepayment penalty today,” he adds.In 2004, HFF secured another refinancing for a Zelman and Carltas joint venture. “We refinanced the Plaza at Encinitas for around $13 million,” Brindley says. “We did an eight-year financing on that property.”Located on a 50-acre site, Encinitas Ranch Town Center was completed in 1996 and 2000, and is 99% occupied. Major tenants include Target, Stater Brothers, Barnes & Noble, Office Depot, PetsMart and Sports Authority. The property is located at 1006 North El Camino Real, at the southwest corner of El Camino Real and Leucadia boulevards.

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