Everett Mall Office II and III: $14,000,000
Dexia funded this $14,000,000 fixed-rate conduit loan secured by 2 office buildings in Everett, Washington. The 4- and 6-story buildings total 188,275 nrsf on a 7.87 acre site. The site benefits from good frontage, visibility and access to the Everett Mall. The loan was underwritten to a 1.45 DSCR and 60% LTV. Structure includes a 10-year term, amortizing over 30 years with an initial five-year interest only period. At time of close, the subject was 92% leased and occupied.
5805 Sepulveda Blvd.: $18,700,000
Dexia funded this $18,700,000 loan secured by an attractive Class A office building in Van Nuys, CA. Built in 1991, the subject is an 8-story, 87,946 sf building with three levels of parking totaling of 285 parking spaces. Major tenants include Hewlett Packard, Countrywide, John Laing Homes, Enterprise Rent-a-Car, Kaiser Permanente, Bioscrypt, and Experior Assessments who total more than 78,811 sf or 90% of the building. The loan was underwritten to a 1.20 DSCR and 80% LTV. The loan was structured with a 10 year I/O term. Occupancy at time of close was 97.2%.
Bacardi Building: $76,500,000
Dexia arranged a $76,500,000 loan facility for the completion of the Bacardi Building in Coral Gables, Florida. The loan was underwritten at a loan to purchase price of 79%, a stabilized DSCR of 1.20x, and was structured on a 24-month term with one 12-month extension option. The subject property is a 251,095 sf, 15-story office tower with a seven-level parking garage and street level retail space. Bacardi USA leases 92% of the building on a 15-year term, to serve as its headquarters. Construction of the subject began in March 2007 and is anticipated to be complete by October 2008. Coral Gables, part of the Miami-Fort Lauderdale-West Palm Beach Metropolitan Statistical Area (MSA), is one of the more affluent and desirable areas of the Miami MSA with less than 4% office vacancy.
Amber Oaks III & V: $82,850,000
Dexia closed two cross-collateralized and cross-defaulted bridge loans to finance the acquisition of a portfolio of eight Class A suburban office buildings - Amber Oaks III and V - which are part of a larger master-planned campus-style Amber Oaks Corporate Center. Amber Oaks III is comprised of three office buildings containing 206,770 SF. Amber Oaks V includes five office buildings totalling 281,885 SF. The properties are well located at the intersection of Highway 620 and Parmer Lane in the Greater Northwest Austin corridor, which is listed as one of the top five fastest growing counties in the US. The three-year, floating rate bridge loan of $34,750,000 for the purchase of Amber Oaks III is interest only for a term of 36-months, with two one-year extension periods. The loan of $48,100,000 for the purchase of Amber Oaks V is structured with initial mezzanine loan funding of up to $30,050,000 with an additional funding of up to $18,050,000 upon defeasance of the existing first mortgage in January 2008 and conversion of the subject mezzanine loan to a senior mortgage note.
Central Park East: $67,000,000
Dexia arranged a $134,000,000 construction loan for the Central Park East project. Dexia, as Co-Lead will underwrite 50% of the total financing, while Wachovia will take the other 50%. The Co-Leads will further syndicate their final takes. The subject improvements will consist of a 494,882 rentable square feet of office space encompassed by a 26-story high rise Class A office building. The rentable area includes 9,162 SF of ground floor retail space, as well as a 9-story parking garage and surface parking. The subject sits on a 31,000 SF land area in the Downtown South Office Submarket, located within the Phoenix Central Business District. The loan was structured on a 36-month term of IO, followed by 30-year amortization during two 12-month extension options.
SHPS Building: $9,400,000
Dexia funded this $9,400,000 loan secured by a 2-story Class A office building in Scottsdale, Arizona. The 64,835 sf building was completed in 2006 and is 100% occupied by SHPS, the US leading provider of Health management and Benefit Administration. Reserves were established for taxes, insurance, and TI/LC. The loan was underwritten to a 1.22 DSCR and 75% LTV. The loan was structured with a 10-year term, amortizing over 35 years.
Gateway II: $33,300,000
Dexia funded this $33,300,000 loan secured by a newly constructed, 129,315 sf, Class A office building in San Diego, California. With modern features and amenities, ample parking, 24 hour security, ease of access, close proximity to major transportation corridors/public transit, and incomparable aesthetic appeal, this award winning property is considered to be the jewel in the redeveloped downtown area's crown. The loan was underwritten to a 1.21 DSCR and 76.5% LTV. Structure includes a 10-year term, amortizing over 30 years with an initial five-year interest only period.
Marina Corporate Center: $18,500,000
Dexia funded this $18,500,000 loan secured by an attractive class-A office building containing 88,215 sf of net rentable area. The subject property is located in the highly desirable, densely populated location of Marina Del Rey, with excellent access and visibility to major arterials. The subject property is fully leased to a single tenant, American Intercontinental University. This lease extends four years past the loan term without any termination options and is guaranteed by Career Education Corporation. The borrowing entity is structured as tenants-in-common. Reserves were established at closing, including a pre-funded debt service reserve. In order to create further liquidity in the loan structure, the borrower committed to additional monthly deposits during the 27-month IO period equal to the normal principal payments during that period. Additionally, substantial TI/LC reserves were collected at funding. The loan was structured with a seven-year term based on a 30-year amortization period. The loan was underwritten to a 1.49 DSCR and a 71% LTV.
Spokane Integrated Medical Plaza / Medical Plaza Garage: $16,100,000 / $5,500,000
Dexia funded these cross-collateralized loans in the amounts of $16,100,000 and $5,500,000 secured by a new, Class-A medical office building and its attached 8-story parking garage, respectively. The properties are located in Spokane, Washington, immediately adjacent to the Deaconess Hospital campus. The medical office building will operate an outpatient surgery center and full modality diagnostic center. At present, 97% of the 94,552sf of rentable space in the medical plaza is leased to two major medical service providers. The garage space is fully leased to Empire Health Services on a 50-year term. For both properties, reserves were established for taxes, insurance, and capital expenditures. The loans were structured with terms of 10-years (medical plaza) and 5-years (garage), amortizing over 30 years. The medical office loan was underwritten to a 1.29 DSCR and a 77% LTV. The garage loan was underwritten to a 1.38 DSCR and a 77% LTV.
Hutchison Metro Center: $90,000,000
Dexia funded this $90,000,000 loan secured by a Class-A office building containing a total of 423,915sf net rentable area, located on 9.09 acres in the Bronx, New York. The subject property is extremely well located with Manhattan and the major NY airports only a 20-minute drive away. Furthermore, the subject property offers abundant on-site parking, which is a major amenity at this close-in location. The subject also benefits from its close proximity to several major medical facilities, which explains the large percentage of medical-related tenants. At present, the subject is 80% leased and will be 80% occupied within the next 6 months. The rent roll is very diverse with a weighted average remaining lease term of more than 180 months. Reserves were established for taxes, insurance, and capital expenditures. The loan was structured with a 10-year term amortizing over 30 years, with the first 2 years on an interest-only basis. The loan currently underwrites to a 1.21 DSCR based on current leases signed and on an IO basis. In order to mitigate the lease-up risk, the loan was structured with substantial reserves:
Carpinteria I Office Building / 6305 & 6309 Carpinteria Avenue (Carp II): $16,200,000 / $5,300,000
Dexia closed these two cross-collateralized, cross-defaulted loans for a total amount of $21.5 million secured by a three office buildings located in Carpinteria, California. Carp I is fully leased to CKE Corp and will be used as their new headquarters. The buildings at 6305 & 6309 have also achieved a high occupancy rate of 99% with a diverse mix of tenants. Reserves were established for taxes, insurance, capital expenditures, and TI/LC for both loans. Both loans were structured with a 10-year term, amortizing over 30 years, with an initial three-year interest only period.
Oakesdale Center: $23,000,000
Dexia funded this $23,000,000 loan secured by a 5-building Class-B+ office complex built on a 12.54-acre property in Renton, Washington. Investment-grade tenants represent a combined 54% of the rent roll. Tenants include Countrywide Home Loans (A3 by Moodys), Beneficial Life Insurance (A+ by Fitch), Wells Fargo (Aa1 by Moodys), and SBC Communications (A2 by Moodys). The loan is well-structured with ongoing monthly impounds for taxes, insurance, capital expenditures, and TI/LC. Reserve deposits for TI/LC and debt service were required at loan closing. The loan was underwritten to a 1.31 DSCR on an adjusted (net of earnout) and a 77% LTV. The loan was structured with a 10-year term, amortizing over 30 years.