Grandbridge Provides $73M for Office, Multifamily

Grandbridge Real Estate Capital, Charlotte, N.C., closed $73.6 million in financing for office and multifamily assets in California and Virginia. 

In Newport Beach, Calif., Grandbridge closed a $45 million first mortgage loan secured by Class A office property 4100 Newport Place Drive. Grandbridge Vice Presidents Hunter Curtis and Taylor Curtis originated the transaction. 

An insurance company provided the permanent fixed-rate loan on the 190,405-square-foot asset. The 15-year nonrecourse financing included an initial interest-only period and did not require the borrower to have any reserves or escrows.

“At the time we went to the market with this financing, the property’s second-largest tenant representing 15 percent of the total square footage had given notice they would be vacating their suite later this year,” said Hunter Curtis. “This information had a material impact on the economics and underwriting of the loan.”

Hunter Curtis said Grandbridge worked with the lender to structure around the vacating tenant without it having any negative impact on the loan amount or loan terms. “This allowed the sponsor to lock in a long-term fixed-rate loan to take advantage of today’s historically low interest rates,” he said.

Grandbridge also provided a $28.6 million acquisition loan for a former bank building converted to a multifamily property in Richmond, Va. Senior Vice President Paul Aanonsen originated the transaction.

First National Apartments, a 154-unit multifamily community, secures the loan. The 19-story building, built in 1915 as a bank and office building, converted to apartments in 2012.

The permanent fixed-rate loan was provided through Fannie Mae’s Green Rewards loan program. The nonrecourse financing included an initial interest-only period followed by a 15-year term and 30-year amortization.