By IvyLee Rosario
Swift Real Estate Partners tapped CBRE’s Capital Markets Debt & Structured Finance team to secure acquisition financing for 530 B, also known as the Union Bank Building, in downtown San Diego.
Mike Walker, Brad Zampa, Megan Woodring, Taylor Shepard, Mark McGovern and Scott Peterson secured and structured the $43 million floating-rate loan at a low spread priced over 30-day LIBOR. Swift purchased the building for $57.7 million from Bosa Development, according to Yardi Matrix. Louay Alsadek and Hunter Rowe arranged the sale of the property on behalf of the seller.
“Lenders competed aggressively for this opportunity. The reputation and track record of the sponsor, quality in-place tenancy and strong fundamentals in San Diego’s downtown submarket created a frenzy of lender interest. We are thrilled with the execution,” said Walker, in prepared remarks.
The seven-year, interest-only loan was provided by a domestic life insurance company and maintains flexibility to sell the property without incurring prepayment penalties in the later years of the loan term. The loan will provide funds for capital improvements as well as leasing commissions and tenant improvements.
The 232,936-square-foot Class A office tower is LEED Gold certified and features common area Wi-Fi, above standard ceiling heights and 233 parking spaces. The 24-story property is home to tenants such as Pick Law, Systems Source, Backstrom & Associates and Stockwell, Harris, Woolverton & Helphrey. According to Yardi Matrix, the building currently has a 12.2 percent vacancy rate, across eight spaces totaling 30,767 square feet.
“With downtown San Diego experiencing its highest historical net absorption this past year and a significant decrease in vacancy combined with the continued growth of the downtown population, the Five Thirty B offering attracted significant interest from investors and lenders alike,” said Alsadek, in prepared remarks.
Swift also worked with CBRE’s Capital Markets Debt & Structured Finance team on the refinancing of Rosewood Commons, an 863,000-square-foot, Class A office complex in Pleasanton, Calif.
Image courtesy of Yardi Matrix