CBRE Secures $17.3 Million Loan for Purchase of Cal Twin Towers in Bakersfield, Calif.

Los Angeles - CBRE’s Capital Markets’ Debt & Structured Finance team arranged a $17.3 million loan for Cal Twin Towers, a 151,829 square-foot office property in Bakersfield, Calif.

Bruce Francis, Dana Summers, Shaun Moothart, Bob Ybarra, Doug Birrell and Jim Korinek of CBRE arranged the 20-year financing on behalf of the buyer, Blumer Construction. The property, sold by Adler Realty Investments, was purchased in the second half of January for $26.1 million.

Located at 4900 California Avenue, the property features two four-story buildings that are 60 percent occupied by national tenants, including Omni Family Health, The University of Phoenix, Kaiser Foundation, and Principal Life Insurance Company. The prior ownership spent nearly $1.4 million in capital improvements over the last three years, including remodeling the third and fourth-floor lobbies, LED lighting upgrades, and the restoration of the upper and lower roofs. The Class A buildings, located on Bakersfield’s main business and financial corridor, sit near retail, restaurants, financial services and hotels and offer virtual concierge services.

“Our correspondent life insurance company lender did a great job providing reasonable high leverage in a secondary market,” said CBRE’s Summers. “The buyer plans to hold the asset long term and capitalize on future appreciation.”

Strong population growth in Bakersfield is likely to produce 3,400 employees in need of office space over the next five years, according to CBRE research. Kern County has the third-highest rate of private sector job growth in California and fourth- highest rate in the nation. Developers have targeted the periphery of Bakersfield’s affluent bedroom communities west of Highway 99 – the location of Cal Twin Towers --an area with some of the highest rental rates in the metro region.