Deutsche Bank provided a $62.5 million loan to Menlo Equities to refinance Irvine Crossings, a 395,673 sq ft, single-story datacenter and technology property in Irvine, California.
The loan has a five-year duration, is full-term interest only, and carries a fixed rate, according to HFF, which arranged the deal.
Irvine Crossings sits on 21.16 acres at 17871 Von Karman Avenue and 17836 Gillette Avenue, less than a mile from John Wayne Airport and two blocks from Interstate 405.
The fully-leased building, renovated in 2000, was partially converted to a powered shell datacenter in 2013; such facilities have completed exterior construction as well as available power and connectivity, but the interior is left as raw space to be completed by the tenant. A datacenter operator and an internet technology company now occupy the facility.
With six other datacenters located nearby, HFF called the area one of the most desirable for datacenters in Southern California, behind downtown Los Angeles and El Segundo.
“Datacenter usage provides a unique set of challenges in obtaining aggressive financing, but we were able to utilize the superior location, and best in class sponsorship, in order to drive the market and obtain an optimal combination of a low rate, full-term interest only and desired leverage,” said Kevin MacKenzie, an HFF senior managing director who led the financing, in a statement.
Founded in 1994 and headquartered in Palo Alto, California, Menlo Equities is engaged in the acquisition, development and operation of properties in select technology markets in the western US, having developed approximately $5 billion in assets comprising more than 100 separate transactions.