January 25, 2008
American Realty Advisors announced today the origination of a mezzanine loan secured by a 499,206 square foot property comprised of nine industrial buildings on 33.52 acres in Milpitas, California. The property is leased to Flextronics, a leading Electronics Manufacturing Services (EMS) provider of complete design, engineering and manufacturing services to automotive, computing, consumer digital, industrial, infrastructure, medical, and mobile OEMs, which will continue to operate the buildings under a 10-year lease.
This functional and flexible research and development (R&D) / manufacturing facility was built in 1992 and has ample parking, roof top heating and cooling, a wet sprinkler system, and 24″ clear height ceilings. The property is situated near US-101, SR-237 and I-880, also known as the ‘Golden Triangle’, the heart of Silicon Valley and hub of commercial business, and just minutes from the Mineta San José International Airport. The property also enjoys convenient access to the surrounding affluent communities that house a large labor force.
The transaction was arranged by Westcore Properties, LLC and executed on behalf of one of American’s commingled funds which has now added an industrial campus to its portfolio. Westcore Properties, LLC, is a private, entrepreneurial commercial real estate investment firm that focuses on investing in markets within the Western United States.
Stanley Iezman, President and Chief Executive Officer of American, stated, “We are pleased to announce our first investment with the highly capable and resourceful professionals at Westcore. This transaction demonstrates our ability to identify and close quality deals in compressed time periods as well as our flexibility and creativity in structuring transactions to meet the objectives of our investors and clients.”
Source: www.americanreal.com
Mezzanine financing is a hybrid of debt and equity financing typically used to finance the expansion of existing companies. Mezzanine financing is basically debt capital that gives the lender the rights to convert to an ownership or equity interest in the company if the loan is not paid back in time and in full. It is generally subordinated to debt provided by senior lenders such as banks and venture capital companies.
Since mezzanine financing is usually provided to the borrower very quickly with little due diligence on the part of the lender and little or no collateral on the part of the borrower, this type of financing is aggressively priced with the lender seeking a return in the 20-30% range.
Source: www.investopedia.com
Get list of EMS manufacturers for your requirements (Its free)
Save time and money. Find quality EMS manufacturers. Fast. Venture Outsource has a massive, global database of contract electronic design and manufacturing capabilities. Speak with a Provider Advisor.
“Was able to very quickly find details on the important elements of setting up EMS and ODM partnerships, talked with an advisor for personalized info on quality providers matching our requirements while getting up to speed quickly about the industry and connect with key staff from like-minded companies and potential partners. Great resource.”
— Jeff Treuhaft, Sr. Vice President, Fusion-IO
Advisors tell you matches we find for your needs, answer your questions and, can share EMS industry knowledge specific to your industries and markets.
