The loan allows Rreef certain pre-payment options and theability to release properties from the loan for re-sale whilerequiring certain loan parameters be maintained, such as the debtservice coverage ratio, according to the source. "You could askthree different people involved and they would come up with adifferent number for what the ratio is," the source says. "It was avery difficult transaction from a lender's perspective because thevacancy in the portfolio and a significant amount of above-marketrents."

The source declined to reveal the specific interest rate andfloat, saying only that it was "extremely competitively priced."Eric Tupler of CBRE Melody, who headed up the loan origination teamfor both deals, declined to comment on or confirm the details,citing client confidentiality. He did say that the time between thebridge and permanent financing reflected the time necessary toinspect and appraise 119 buildings.

The Silicon Valley portfolio, which is approximately 68% leased,contains a mix of 1980s and 1990s low-rise office and R&Dbuildings located in the cities of Mountain View (Synopsys campus),Santa Clara (Marriott Business Park), Milpitas (Milpitas BusinessPark and the Quantum/Maxtor campus), Sunnyvale and San Jose. Theportfolio's 132 tenants include ADAC Laboratories/Philips MedicalSystems, Maxtor/Seagate Technology, Synopsis and Samsung. Locallyheadquartered Peery-Arrillaga developed the portfolio on 337 acresover the past 40 years.