Sonnenblick Goldman tapped to arrange $64m trade center loan.

Sonnenblick Goldman has been retained by Rubicon Investments to arrange a non-recourse, fixed or floating-rate senior loan for the 660,000 square foot Overland Park Trade Center in Overland Park, Kan.

The property is 100% long-term leased to three quality tenants, two of which are rated 'A' by Standard and Poor's, with the third paying rent at approximately half of prevailing market rates.

The loan will be comprised of approximately $54 million of refinance proceeds plus a $10 million "good news" facility, which will be used to provide additional capital to help effectuate the as-of-right relocation of the below-market tenant and to retenant the space.

United Healthcare Group, a NYSE company that is one of the largest insurers in the world, currently occupies about 50% of the building and is rapidly expanding within the property.

United Healthcare recently expanded into an additional 130,000 s/f at the property and built a 15,000 s/f building on the property at its own cost. United Healthcare has invested over $60 million into its space with the existing lease running through 2016.

According to Dave Karson, director of Sonnenblick Goldman, "It's not often that you find a property fully occupied on a long-term basis by tenants of this caliber that still has so much near-term upside. The owner intends to exercise their right to relocate the lower rent paying tenant, which can lead to a nearly 50 percent increase in cash flow and a much more valuable building."

Andrew Oliver, managing director at Sonnenblick Goldman, added, "The initial loan funding equates to a value of less than $85 per square foot, which compares favorably to recent investment sales averaging $135 per square foot. This is an attractive opportunity for lenders given the asset's strong performance."

Overland Park Trade Center is centrally located in Overland Park, Kansas City's premier corporate office submarket with almost 23 million square feet of space and boasting over 90 percent occupancy. The 22-acre Sprint World Headquarters campus is directly across the street from the property.