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IRVINE, CA-The Koll Co. has lowered the interest rate on the debt for its 1.2-million-sf Koll Airport Business Center here via a $162-million package arranged by Churchill Commercial Capital Inc. of Phoenix. Jay Spurgiasz, vice president at the Newport Beach-based real estate acquisition, development and management firm, tells GlobeSt.com that the refinancing was “for general business purposes and to increase flexibility and liquidity.”

According to Cynthia Hammond, president of Churchill Commercial Capital, Koll’s new financing was arranged at a competitive interest rate that is lower than the rate on the former financing for the Koll Airport Center. Hammond and Churchill associate Michael Doyle arranged the financing for the property, which consists of 68 industrial buildings of one and two stories with more than 560 tenants located in the Irvine Business Complex, about a quarter-mile mile from the John Wayne Airport. Koll, which developed its business center in 12 phases between 1968 and 1979, completed renovations to the complex between 2004 and 2006.

Hammond tells GlobeSt.com that a number of lenders were in the running for the financing, which Churchill arranged with two of its life insurance company correspondents, Allstate Life Insurance Co. of Northbrook, IL and ING Investment Management of Atlanta. Allstate took the subordinate position, with a $54-million loan, and ING took the lead position with a $108-million loan.

“Allstate and ING were able to fix the rate on this loan in September and close it before year end, despite credit market turmoil,” Hammond points out. Churchill will service the loan, which is for seven years on a 30-year amortization schedule. The first three years are interest-only; the loan was the fourth to be closed between Allstate, Churchill and entities managed by the Koll Co.

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