San Jose, CA
|GROSS LOAN AMOUNT||$6,265,500|
|LOAN TO VALUE||38.9%|
San Jose, CA
$6,265,500 FOR THE ACQUISITION OF AN
OFFICE/RESEARCH & DEVELOPMENT PROPERTY IN SAN JOSE, CA
The borrower sought $6,265,500 in note purchase financing to acquire the senior secured first lien mortgage loan on this Ringwood Avenue office complex in San Jose, CA. The properties are owned by the borrower and consist of two office/research and development (R&D) buildings situated on 9.96 acres of land located within the Ringwood Business Park. The buildings are 90,232 and 71,185 square-feet respectively. Hence this loan provides an attractive basis of $38.82 per square foot. As of the funding date, the buildings were 65.4% occupied, with Akon Defense as the largest tenant. The outstanding principal balance of the note was $8,000,000, which was held by GE Business Financial Services, Inc., as successor of interests in Merrill Lynch Business Financial Services. Merrill’s original principal loan amount in 2006 was $14,500,000. The borrower has been current on all payments on the loan since it was originated in 2006. The borrower contributed approximately $1,200,000 of cash at the closing of this loan. The lock-box account, which has administered all rental income and property-related expenses since GE made the original loan in 2006, remains in place for this loan.