TBI ACQUIRES THREE CAMPBELL BUILDINGS

Toeniskoetter & Breeding, Inc. Development has acquired three adjacent office buildings located between Winchester Boulevard and Camden Avenue in Campbell. The three one-story buildings at 743, 745 and 747 Camden Ave. total 61,056 square feet and were acquired from a partnership owned by the family of the late Howard J. White III, Vice President Dan Amend of TBI Development announced.

DAN AMEND NAMED DIRECTOR OF CHILDREN’S DISCOVERY MUSEUM

Daniel T. Amend, Vice President of Toeniskoetter & Breeding, Inc. Development (TBI Development), has been appointed to the Board of Directors of the Children’s Discovery Museum. Mr. Amend also has joined the museum’s Committee on Exhibits & Programs, which is developing the “Art Loft,” a new art studio for children 4 to 10 years old for which TBI is making a significant contribution.

TBI DEVELOPMENT LOCKS REFINANCE RATE AT HISTORICAL LOW

SAN JOSE – Lucky as well as good, Toeniskoetter & Breeding, Inc. Development (TBI Development) recently concluded refinancing of Campbell Gateway Square at what turned out to be a historically low rate.

The rate for a 10-year, $4.3-million loan on the medical office and multi-tenant retail center in Campbell was locked in last March 17 at 95 basis points above the 10-year Treasury bond. The rate bottomed out that day at 3.68%. The loan rate is 4.63%.

“Although we incurred a pre-payment penalty, the interest savings was so dramatic that we felt we must lock in the rate,” Vice President Dan Amend said. “We had no way of knowing it at the time, but we hit the market at what turned out to be approximately a 40-year low.”

John W. Souza of Barry S. Slatt Mortgage Co. in Burlingame brokered the loan with Thrivent Financial for Lutherans. At the same time, TBI Development and Souza also locked in a $4 million, 10-year loan with Thrivent at 4.83% for two warehouses totaling 243,736 square feet in Milpitas. The warehouses were more challenging to refinance because they involved a ground lease. Contract manufacturer Solectron and food distributor T. Marzetti Co. lease the warehouse space on Yosemite Drive.

Souza and the Barry S. Slatt Mortgage Co. also brokered a third refinancing for TBI Development, $1.75 million from the Nebraska insurance company Woodmen of the World. The project, known as CBR-Triad, is located in the Cochrane Business Ranch in Morgan Hill.
All the loans had relatively low loan-to-value ratios. TBI Development partnered with O’Connor Hospital and Hunter Storm Properties to develop Campbell Gateway Square at the intersection of Hamilton Avenue and Winchester Boulevard. O’Connor leases medical offices, and retail tenants include Charles Schwab, Kinko’s, Wells Fargo Financial, Kazoo Restaurant and Walgreen’s.

Satisfaction with the transactions was tempered, however, by the death of Barry S. Slatt shortly after the loans were concluded. Mr. Slatt died unexpectedly Nov. 1 of a heart attack.
“TBI has enjoyed a long and fruitful relationship with Barry Slatt, and we greatly miss him,” Mr. Amend said. “Barry had overseen the funding of billions of dollars in loans during his career and was one of the most knowledgeable and respected mortgage brokers in California. Although his passing is a loss to us all, we look forward to continuing our strong relationship with his company.”

Mr. Slatt founded his company in 1971. He had served as president of both the California Mortgage Bankers Association and the Northern California Mortgage Bankers Association, and he had recently completed his fourth term on the Board of Governors of the National Mortgage Bankers Association.

TBI Development’s solid financial reputation and expertise in the markets constitutes a significant strength as a development partner. Every property the company develops is financed twice, for construction loans and permanent loans. And during the eight years that Mr. Amend has had responsibility in financing, every property also has been refinanced at least once.

Founded in 1983, Toeniskoetter & Breeding, Inc. Development has developed 2.5 million square feet of buildings, manages a portfolio of 2 million square feet and serves as managing general partner for a number of diversified real estate properties throughout Santa Clara and Santa Cruz counties. In addition to the refinanced properties, the portfolio includes the 30-acre Cochrane Business Ranch and the 110-acre Business Park, both in Morgan Hill; 450 West Santa Clara Street, the O’Connor Health Center, and 525 Race Street, all in San Jose; and the Granite Creek Business Center and other buildings in Scotts Valley.