Location:
10001-10101 North De Anza Blvd.
Cupertino, California
Client:
Four Corners Properties, LLC
Westbrook Partners
Property:
Two adjacent mid-rise (3- and 4-story) steel-frame commercial office buildings with 81,230 square feet of rentable area, located in Cupertino, California
Assignment:
Arrange floating rate acquisition financing, including transaction costs, for the purchase of improvements on a ground lease
Challenges:
Loan subject to an unsubordinated ground lease with minimal mortgagee protection language
Exposure to a foreign-based tenant with unrated credit and near term lease rollover for a significant portion of the property (74%)
Results:
$20,100,000 (80% LTC)
Term: 3 years plus two 1-year extensions
Amortization: Interest only
Prepayment: Spread maintenance during initial 12 months; 0.5% exit fee through 13th - 18th month; then open at par
