Permanent Loan – Refinance$17,500,000
39,481 sf Medical Office Building
Manhattan Beach, CA
Axiom Capital Corp. structured and arranged the closing of a $17,500,000 permanent loan for the refinance of a medical office building in Manhattan Beach, CA. The 10 year, non-recourse loan was closed at a fixed rate and demonstrated a 72.9% Loan to Value and a 1.73x Debt Service Coverage Ratio amortized over 30 years.
The subject property is a two-story medical office building that spans an entire city block in Manhattan Beach. The unparalleled location has spectacular ocean views in over half of the space and flexible floor plans which allow for full floor and multi-tenant configurations. The building was purchased by the Borrower in 2006 and has since been leased by stable high quality tenants. The property is anchored by Kaiser Foundation Health Plan, Inc., the largest healthcare provider in the nation, under a new 10,316 SF lease which will include approximately $5 Million in tenant improvements. Beach Cities Orthopedics & Sports Medicine has been a tenant at the property since 2008. They have expanded their space overtime to their current 20,314 SF footprint which includes a new state of the art surgery center which was under construction at the time of closing.
Located on South Sepulveda Boulevard, the property is a quarter mile from the Pacific Ocean in Los Angeles County, CA. The central South Bay location and metropolitan freeway system gives Manhattan Beach access to major employment centers in the region. Los Angeles has a larger population than 42 states in the nation and within a three mile radius of the property there are approximately 173,000 people with a median age of 37.8 and a median household income of $90,511. Major employers in the area include, Northrup Grumman, Toyota, Honda and Honeywell.