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ALISO VIEJO, CA-The owner of the 60,648-square-foot Journey Business Park at 6 Journey here has refinanced the property with a new $5.5-million loan that was arranged by Shaun Moothart of the Alison Co. through one of Alison’s life insurance company correspondents. Moothart tells GlobeSt.com that the Alison Co. locked in a competitive rate 75 days before funding of the new loan, which paid off a 10-year-old maturing CMBS loan and covered closing costs as well.

Moothart explains that the 75-day lock was 15 days more than the typical 60-day lock because the borrower, a locally based private investor, needed the extra time in order to comply with prepayment requirements and other terms of the CMBS loan. He notes that closing the loan required “working around negative changes in market fundamentals throughout the closing process,’ including a 40-basis-point upward swing in the Treasury market.

Moothart says that one of the challenges in underwriting 30 to 60 days before a loan is approved or committed is the “ever-changing and variable market conditions” in commercial real estate today. In addition to interest rates being very volatile during the time that Alison was negotiation the loan, cap rates were and still are moving all over the place, which presents challenges in valuing properties. Moothart tells GlobeSt.com that the funding of the loan shows that CMBS loans that are seven to 10 years old and are maturing can get financing because they are generally not overleveraged like loans made at the peak of the market.

Journey Business Park, which was built in 1999 and is 93% occupied, consists of a multi-tenant business park that is made up of two separate buildings of concrete tilt-up construction situated on a 3.3-acre parcel. Units range from 1,100 to 12,000 square feet and include office, light industrial and retail uses.

The new, 10-year loan amortizes over 25 years. The Alison Co. will also service the loan on behalf of the lender, adding to the company’s existing servicing portfolio of more than $1 billion.

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