May 22, 2015
Quantum Capital Partners recently secured 15-year interest-only financing fixed at 3.5 percent on 606 S. Olive St. in Downtown Los Angeles. The loan originated by John Hancock Life Insurance Co., is amortized over 30 years.
The 299,000-square-foot, 24-story building overlooks Pershing Square. The asset was built in 1968 for City National Bank and is 98 percent leased, 60 percent of it leased to GSA tenants and non-profits.
The deal was different from a lot of financing seen nowadays when most borrowers want a transaction to close as soon as possible. Instead, the borrower would have been penalized if it refinanced its CMBS loan prior to May. So the deal was first arranged in October, and John Hancock agreed to hold the rate until May.