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Phoenix & Southwest  + Phoenix  + Finance  | 

Despite Caution, Financing is Doable on Office

Highland Realty Capital recently secured a $10 million fixed-rate loan to refinance the 135,000-square-foot Mill Avenue Business Park in Tempe. The project is comprised of both industrial flex buildings and a traditional office building.

The non-recourse loan was provided by a national bank, and the rate was fixed at 3.15 percent for 10 years with a 30-year amortization. The loan has a more borrower-friendly prepay penalty structure compared to typical yield maintenance, giving the borrower, a tenancy in common structure, more flexibility to prepay the loan in the future.

“Lenders are still understandably cautious on office product right now,” says Highland principal Brad Sevier, “but in this case, most of the income is coming from industrial flex tenants, and there were no significant collection issues at the project as a whole. The project is very well managed.”

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About Lisa Brown

Lisa Brown has decades of experience in corporate communications and marketing management with organizations including Coldwell Banker Residential, Grubb & Ellis, Marcus & Millichap, NAIOP, SIOR and ALM. In those positions, she worked in conjunction with chief executive officers and chief marketing officers to create corporate messaging, cohesive branding standards, strategic marketing plans and thought pieces. Brown is a frequent speaker at industry events and an editing adjunct professor for an online course. She has a master’s degree in mass communications from San Jose State University.