Dealmaker: Bandon Capital Advisors Secures $14M for California Office

(Nexon headquarters, El Segundo, Calif.)

Bandon Capital Advisors, Los Angeles, arranged a $14 million loan for BLT Enterprises that refinanced a 49,000-square-foot single-tenant creative office building in El Segundo, Calif. 

The refinanced property’s tenant, interactive entertainment software Nexon, uses the space for its U.S. headquarters.

Bryan Kenny, Co-Founder and President at Bandon Capital Advisors, noted the transaction shows the viability of office financing in the current landscape. “The Los Angeles office sector took a hit during the pandemic, but if landlords can deliver quality, amenity-rich office spaces outside of central business districts, they will likely outperform the greater office market,” he said. 

A life company lender supplied the long-term fixed-rate loan with an interest-only period followed by a 30-year amortization.

Kenny said some financial institutions, especially banks, have tightened their credit standards and become more conservative in their underwriting, with many not lending on office assets at all. But he noted some life company lenders show interest in moderately leveraged office deals supported by strong, experienced sponsors.