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Sonnenblick-Eichner Co took advantage of improving capital markets to arrange a $12.4M fixed-rate loan for a 63k SF fully leased building in Emeryville, CA. An unnamed investment bank provided the 10-year non-recourse loan at less than 4.5%.
Ex’Pression College of Digital Arts is the sole tenant of the property. Sonnenblick-Eichner managing director Tina Derderian says the firm was able to generate lender interest despite some of the specific challenges associated with the deal. “Although a for-profit private college tenant presented some challenges, we were able to overcome lender concerns by illustrating the strength and depth of the Emeryville creative office market,” she says.
Sonnenblick-Eichner principal David Sonnenblick notes an improving credit picture contributed to the ease of closing the financing. “The real estate capital markets have rebounded nicely since the beginning of the year, when uncertainty caused credit spreads to widen significantly,” he says. “The recent flight to quality in the Treasury markets and increasing demand for CMBS paper has resulted in both a reduction in the pricing indices and the tightening of credit spreads, resulting in an overall lower cost of capital for borrowers of commercial real estate loans.”
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