Cohen Financial announced that the firm has secured $19.5 million in debt for San Francisco-based Venture Corporation. The borrower is using the funding for improvements to an undeveloped 60-acre tract of land within the otherwise developed 300-acre Morgan Hill Ranch Business Park. The property -- one of the largest business parks in the San Francisco area -- is located along Highway 101, in Morgan Hill, Calif., just 15 miles south of San Jose.
Replacing higher cost debt with this lower cost financing will allow Venture Corporation President Robert Eves and CFO James Burck to improve cash flow and make street improvements to the property that will result in higher land values. Venture Corporation is recognized as the country's largest developer of industrial condominiums.
The financing consists of a 3-year, floating rate, full-recourse loan, based only on land value, and secured by Cohen Financial at 70 percent loan to value with pricing over LIBOR. The lenders are The Marshall Group and First Bank.
"We are pleased to have assisted this very prominent client with this somewhat specialized financing request. Venture Corporation is an expert at creating product for small space users via their industrial and office condominium projects. This refinance will allow Venture to create smaller parcels which will better suit the ever growing small tenant market," said Cohen Financial Managing Director Capital Markets Unit -- San Francisco Paul A. Schroeder, who originated the transaction with Cohen Financial Director Robert Kincheloe, also from the San Francisco office. The transaction closed on August 1, 2006.
Cohen Financial is a national real estate finance company offering debt and equity placement, investment brokerage, loan servicing and financial advisory services. The company is recognized as one of the nation's largest originators of commercial real estate financing, with more than $5.1 billion in total transactions in 2005 and more than $5.2 billion in loan servicing. The company has also provided financial advisory services on more than $1 billion of assets. Cohen Financial serves clients throughout the country from 10 offices in major markets.
The Cohen Financial San Francisco office is located at 111 Sutter St., Suite 950, San Francisco, Calif. Cohen Financial Managing Director Paul A. Schroeder can be reached at 415-591-3107, or email at email@example.com.