81,000 SF Office Building
Highland arranged a $10.75M bridge facility to takeout a maturing loan against Park Plaza, an 81,000 square foot office building located on Lake Merritt in Downtown Oakland. A creative A/B loan was structured by Highland with a regional bank that carried an attractive fixed rate over 7 years, with the A note amortizing over a longer period than the B note. This allowed Highland’s client to fully repay the existing mortgage, at a time when strict underwriting and a soft market would not have yielded enough dollars using traditional parameters. Unlike a typical fixed-rate mortgage, both tranches of the new loan feature a declining prepayment schedule that provides the borrower flexibility to refinance or sell within the 7-year term.