Inland Mortgage Capital (IMC) is pleased to announce the closing of a $5,850,000 non-recourse bridge loan on two office buildings in San Diego. The 2-story Class-B office property, located in the Sorrento Mesa submarket, totals 30,996 in net rentable area. With 17 tenants, the property is currently 93% leased, with two of the largest tenants occupying 29% of the space. In the past 10 years, the property has averaged 93% occupancy.
The loan will be used to acquire the property and to complete renovations such as roof repair, exterior painting and lighting, along with HVAC unit replacement, and common area updated in the buildings. IMC held back monies for capital improvements and leasing costs, and as is typical, charges no interest on undisbursed funds. With the updated exterior renovations, the Borrower believes that rents can be increased consistent with the submarket for like buildings, especially for a building that has had little trouble maintaining historical occupancy.
IMC liked the granular rent roll and historical operating performance of the property. In addition, the Sorrento Mesa office market has tightened considerably, as San Diego has seen an influx of medical and technology companies.
The property itself is in a prime location, just 15 miles north of downtown San Diego. It also boasts excellent connectivity to the downtown area via Interstate 805 and 5, and the area’s main local transportation artery is a block away from the property.
IMC charged a competitive rate for its non-recourse loan and provided a loan structure that allows the Borrower to payoff the loan with no prepayment premium at any time.
