17 March 2017
San Diego
Reporter: Theo Andrew

San Diego offices acquired for $34.3 million


MetroGroup Realty Finance has secured $34.3 million in financing for the acquisition of a four-building office complex in San Diego.

Secured on behalf of the Klein Investment Family Limited Partnership, the loan will be used to purchase the 132,695-square foot campus in the Kearny Mesa submarket. The complex is 100 percent leased to Cobham Advanced Electronic Solutions.

The financing is made up of a bridge loan of $7 million and a permanent loan of $27.3 million from MetroGroup.

Temporary liquidity will be provided by the bridge loan in anticipation of the sale of an existing property owned by Klein Investment. The permanent financing is for a period of seven years, to be gradually written off over 25 years.

The buildings are located at 9404 Chesapeake Drive and 5775, 5785 and 5788 Roscoe Court in San Diego. Klein Investment plans to replace the roofing, electrical power and heating, and ventilation and air conditioning units.

According to Patrick Ward, founder of MetroGroup Realty Finance, investors are looking for high-quality assets in San Diego markets, well positioned for long-term growth and able to withstand economic shifts.

“San Diego is one of the most dynamic markets in the country and is internationally recognised as a leader in aerospace and defense,” said Ward.

“The continued growth in these industries, coupled with the region’s record low vacancy is driving tremendous investor demand to the area.”

He added: “Our deep history and innovative approach to sourcing capital allowed us to structure the financing in a way that provided our client the opportunity to acquire an attractive investment that was available now prior to selling one of their assets.”

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