Sonnenblick-Eichner Arranges $22 mil in Financing
MOUNTAIN VIEW, CA. January 9, 2006. Sonnenblick-Eichner Company announced today that they have arranged $22 million of first mortgage financing for 1040 Grant Road, a 112,000 square foot shopping center located in the Silicon Valley. The 10-year fixed rate loan, which was placed with a Wall Street investment bank, was priced at approximately 100 bps. over the 10-year Treasury with a 30-year amortization schedule; the first three years of the loan are interest only.
The property is 100% leased with tenants including Marshalls, Rite Aid, Blockbuster and Cingular Wireless. Located in Mountain View, California, this shopping center benefits by being located within close proximity to some of the most affluent communities in the nation including Palo Alto, home of Stanford University. ountain View is also home to some of the nation's largest internet and technology companies including Google, Intuit and the Silicon Valley campus of Microsoft.
"Our client was able to take advantage of the very favorable debt markets for retail and consequently locked in long term financing at approximately 5.5%. The amount of pent-up equity that he realized from this transaction combined with the cost savings on the interest rate of the new loan, more than offset the expense of prepaying his existing debt", commented David Sonnenblick, Principal of Sonnenblick-Eichner Company.
Patrick Brown, also a Principal of the firm, added: "Even though the anchors both roll within the next four years, we still were able to generate tremendous interest in the marketplace with multiple offers being priced in the low 100 bps. over treasury range without any additional leasing reserves ."
This transaction, which provided for a financing of up to 80% of value, refinanced a previous mortgage that Sonnenblick-Eichner Company had arranged for the borrower on the property in 1997.
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