Los Angeles and Phoenix  – Karlin Real Estate Lending has provided Onward Investors, LLC with an $8.15 million senior credit facility to recapitalize a 109,820-square-foot office property in Northwest Phoenix.

The short-term loan was secured by Bell 28 Office Park, which comprises two Class B Buildings of 62,098 square feet and 47,722 square feet.  Built in 1999, Bell 28 Office Park is located within the Arizona Business Park, a 125-acre master-planned business park in the Deer Valley submarket. Onward, an Edina, MN-based real estate investment firm, acquired the asset out of CMBS REO in October 2012 in an all cash transaction.

“The borrower was able to acquire the property at an attractive valuation,” said Larry Grantham, Managing Director of Karlin Real Estate Lending.   “In addition to improving efficiencies through proper management, Onward principals are investing meaningful equity to reposition the buildings as ‘first-to-lease’ Class A space in the submarket. At their cost basis, Onward, should be able to improve rent roll through an aggressive leasing program.”

Onward has already signed a new 4,000 SF lease and has received interest from other prospective tenants, according to Grantham.

"The financing structure allows us to effectively implement our business plan by providing the necessary resources to attract a solid tenant base and stabilize the property within a strengthening office environment,” added Ron Sweet, managing director of capital markets for Onward.  “We are very pleased with the newly established lending relationship with Karlin and look forward to expanding this relationship in the future."

A portion of the loan proceeds will fund tenant improvements and costs associated with lease up, according to Grantham.

Karlin Real Estate Lending, a Los Angeles-based Bridge Lender backed by $1.5 billion in long-term equity capital, has deployed more than $200 million in senior and mezzanine financing for the acquisition and refinancing of opportunistic and transitional real estate assets throughout the United States.  Karlin Real Estate Lending is the lending arm of Karlin Real Estate, an affiliate of private investment firm Karlin Asset Management.