Dennis Williams, senior vice president/managing director and Briana Harney, senior investment analyst of NorthMarq Capital’s San Francisco regional office, arranged the $38.5 million refinance of a 292,000-square-foot office property located at 1501 & 1620 Fountainhead Parkway in Tempe, Arizona. The transaction was structured with a 2-year interest only term. NorthMarq arranged financing for the borrower entities, Harbert Management Corporation (HMC) and Cypress Office Properties, LLC through a debt fund.
Harbert Management Corporation (“HMC”) is a Birmingham based alternative asset management firm with approximately $5.9 billion in assets under management as of February 2018. HMC has been the active developer, manager and investor in office properties throughout the United States for over thirty years and is currently investing its sixth U.S. focused value‐add fund.
Based in San Diego, Calif., Cypress Office Properties is a real estate investment and advisory firm specializing in the acquisition, asset management and repositioning of office, R&D and flex properties. HMC and Cypress have joint ventured on five transactions in the Phoenix, San Diego and Orange County markets.
“HMC and Cypress acquired the property in December 2014 and have invested significant capital to reposition and lease up the property,” said Williams. “They were still in the process of completing lease up when their existing debt was coming due. The new loan enabled them to refinance their debt on the property, secure additional funds for leasing costs, and will facilitate bringing the property to stabilization. The bridge loan has a favorable prepayment structure which will enable the borrower to complete their business plan post lease-up.”