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.)

LOS ANGELES-G&L Realty of Beverly Hills has lined up $189 million of refinancing for a portfolio of eight medical office buildings in Southern California in a deal arranged by Capmark Finance Inc. The $142.25 million first phase of the financing on seven buildings in the portfolio closed recently, with the remaining $46.75 million of the package slated to close in October.

Gary Luboff of Capmark’s Pasadena office tells GlobeSt.com that G&L initially sought the refinancing to pay off about $67 million in preferred stock, but G&L also decided that the timing was right to raise additional funds because of the current high property values and favorable conditions in the capital markets. Luboff arranged the financing, with assistance from Paul Taylor of Capmark Capital Inc., the capital markets and investment banking affiliate of Capmark. US Bank, Principal Global Investors and Morgan Stanley funded the loan.

G&L is one of the largest medical office building landlords in Southern California, with more than one million sf that includes a high concentration of trophy buildings. Four of the seven office buildings in the portfolio being refinanced are on North Bedford Drive in the heart of downtown Beverly Hills. Overall, the portfolio is 99% occupied.

A number of lenders competed for the deal, according toLuboff, who says that the overall high-quality of the collateral and “the solid reputation of G&L” created the competition.The 10-year, fixed-rate $142.25 million first phase of the refinancing is interest-only and is priced at a spread of less than 100 basis points over the 10-year Treasury.

With the new financing, Capmark has arranged more than $400 million in financing for G&L. He points out that G&L has a senior housing group in addition to its medical office group, and that Capmark has closed two refinances of nursing homes in Arizona for G&L as well as other loans.

The medical office properties that are being refinanced were previously securitized on CMBS loans that were delivered by Capmark’s predecessor, GMAC Commercial Mortgage, Luboff notes. The new financing is also a securitized package.

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

*May exclude premium content
Already have an account?



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
Live Chat

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.