FOR IMMEDIATE RELEASE
Contact: Jessica Neuman
IDEA HALL
(714) 436-0855 ext. 31
jessica@ideahall.com
Buchanan Street Partners Structures $24.4 Million in Total Capitalization for Janez
- Funds planned for an industrial condo conversion in Poway, CA
- Buchanan completes third investment and sixth debt placement with Janez
Poway and Newport Beach, CA (August 8, 2006) - Buchanan Street Partners, a national real estate
investment bank, has arranged $24.4 million in bridge loans and equity for the acquisition of a flex
(industrial / office) building in Poway, Calif. by Janez. Wrightwood Capital provided a $19.5 million
non-recourse loan, and Buchanan Fund V invested $4.4 million joint venture (pari-passu) equity for the
147,907-square-foot building.
Janez acquired the Parkway Commerce Center for $148 per square foot, which is planned for an industrial
condo conversion. Chris Dornin, vice president of Buchanan's Debt & Structured Finance team, oversaw the
loan structure with an initial funding of $17.9 million and a holdback of $1.6 million for capital
improvements, soft costs, and interest reserve. Buchanan's equity stake represents 90 percent of this
project's equity and the project marks the third investment and the sixth debt placement with Janez.
"We invested with Janez because of their solid 20-year track record of success, knowledge of the product
type, and sound business plan," said Stephen Blue, Buchanan Street Partners' senior vice president,
Investment Management team. "The limited competition in this premier location also provides favorable
market fundamentals."
Built in 1999, the property is located in the Poway Industrial Park of San Diego. San Diego's industrial
space remains strong, reflected by increasing job growth, decreasing vacancy rates, and expanding local
businesses.
"The acquisition of the Parkway Commerce Center is in line with our strategy to acquire well-priced,
strategically located, institutional quality office and industrial properties in growth markets," said
Janez vice president Ryan Gilbert. "There is a high demand for this type of product mix because fewer
new buildings are coming on line to satisfy demand over the short term due to development constraints
and rising construction costs."
According to the technology trade association, AeA, San Diego ranks first in California's R&D and testing
labs employment with 25,200 jobs, first in consumer electronics manufacturing with 3,300 jobs, and second
in communications equipment manufacturing employment with 5,100 jobs. Grubb & Ellis market data
indicates that industrial space in Poway represents 12 percent of all industrial space in the Central
County region and has a low vacancy rate of 4.5 percent, compared to 5 percent for Central County and
6 percent for all of San Diego. Only 145,685 square feet or 1.6 percent of total industrial space is
under construction in Poway, which would have modest impact on supply.
About Buchanan Street…
Buchanan Street Partners is a real estate investment bank that provides
real estate capital for owners and developers. The firm makes principal equity investments for real
estate in a discretionary capacity, arranges debt and structured finance, is an investment manager
to institutional and private investors, offers investment sale brokerage services, and has a specialty
in self-storage finance. Offices are located in Newport Beach, Los Angeles, San Francisco, Chicago
and Atlanta.
About Janez Properties…
Based in San Diego, Calif., the Janez Group is a diversified real estate organization, specializing
in the acquisition, development and management of commercial real estate in Southern California. The
full-service real estate investment, development and property management firm has a successful 20-year
track record acquiring, developing and managing commercial, condominium and marquis mixed-use properties.
For more information, visit www.janezgroup.com.
