Real Estate Finance & Investment
LoanCore Capital Partners ̧ a Connecticut-based non-bank lender, has provided a $41m bridge loan for a high-leverage acquisition of a 71,000-square-foot office asset in Silicon Valley.
Dutchints Development purchased the property, located at 5150 El Camino Real in Los Altos, from Boston-based TA Realty for about $48m, or $627 per square foot, according to Real Capital Analytics.
George Smith Partners arranged the non-recourse financing, which has a 24-month term at an 85% loan-to-purchase price. The interest-only loan was secured at LIBOR plus 5.62%.
The George Smith team, which included Malcom Davies, Evan Kinne and Zachary Streit, was in application about three weeks after winning the assignment and closed the loan within a short escrow period. “[The attractive financing] allowed our team to canvass the market with multiple potential capital stacks, including mezzanine and preferred equity for the appropriate lender who not only understood the market, but also recognized the strength of this asset within the market,” said Kinne.
The purchase represents the largest acquisition to-date for Vahe Tashjian, principal and managing director at Dutchints Development. In a statement, Tashjian noted that the firm continues to seek larger assets from this owner and others in the institutional community.
Tenants in the suburban office complex include SBC Insurance, Daintree Networks and Peninsula Law Group.