MetroGroup Secures $34M Financing for San Diego Campus
The four-building facility is fully occupied by Cobham Advanced Electronic Solutions.
By Mihaela Coste
Cobham Campus in San Diego, aerial view
San Diego—Newport Beach, Calif.-based MetroGroup Realty Finance has recently secured an acquisition financing in the amount of $34.3 million on behalf of Klein Investment Family LP to acquire a 132,695-square-foot office/flex campus located in the Kearny Mesa submarket of San Diego. The financing was split into a $7 million bridge loan and a $27.3 million permanent loan, to perfect an IRS 1031 tax deferred reverse exchange.
The bridge loan is interest-only floating over LIBOR for a term of one year. The permanent financing has a seven-year term, amortized over 25 years.
The campus is fully leased to Cobham Advanced Electronic Solutions, a subsidiary of global UK-based Cobham PLC, which recently signed a new long-term lease. According to Cushman & Wakefield, the seller of the property is Gramercy Property Trust.
Located at 9404 Chesapeake Drive and 5775, 5785 and 5788 Roscoe Court on a 9.57-acre site, the asset consists of four buildings completed between 1983 and 1985, each totaling between 30,500 and 38,000 square feet. The campus provides convenient access to other regions, being positioned at the intersection of State Route 52 and Interstate 15, and is within close proximity to a large and expanding amenity base in addition to both executive and workforce housing.
The borrower plans a series of significant tenant and property improvements, including roof and HVAC unit replacements, upgrading electrical power, fire systems and resealing and restriping the parking lots.
“We took a unique approach to securing financing for this acquisition, and recommended combining a bridge and permanent loan,” said Patrick Ward, founder of MetroGroup Realty Finance, in a prepared statement. “The bridge loan will provide temporary liquidity in anticipation of their selling an existing property. Proceeds from the sale of their existing property will retire the bridge loan and complete the reverse exchange.”
“We have been working with the Klein’s for over twenty years,” he added. “In that time, they have acquired and amassed a strong, balanced portfolio of well tenanted conservatively leveraged net leased industrial properties similar to the Cobham campus.”
Images courtesy of MetroGroup Realty Finance
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