Occidental Receives $ 233 Million JP Morgan Loan For Sprint’s Former Kansas Headquarters – Commercial Observer

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Jp morgan chase there was a debt of $ 232.5 million before refinancing Western managementsuburban office park Aspiria, a 3.8 million square foot campus located south of Kansas City in Overland Park, Kansas, according to information Kroll Bond Rating Agency (KBRA).

The two-year CMBS loan closed on Aug.10 to pay off existing debt of over $ 188 million and fund multiple reserve accounts, including a $ 30.6 million pool for tenant improvement and lease commission costs, and a debt service provision of $ 3. $ 7 million. The loan will be charged with a floating interest rate of 4.15 percent higher than Libor.

The campus of 20 buildings was built between 1999 and 2001 to serve as the headquarters of the telecommunications company. Sprint and currently about 41% are leased T-mobilewhich, according to KBRA analysis, currently covers 1.5 million square feet of short and long term leases.

Shortly after Sprint and T-Mobile announced a merger of roughly $ 26 billion in 2018, Occidental bought Aspiria the following year for nearly $ 251 million, or $ 67 per square foot, and then leased out $ 2.1 million. square feet back T-Mobile – roughly According to KBRA, 1.0 million square feet are leased for 10 years and the remaining 1.1 million square feet are leased on a short-term basis of 12 to 24 months. Occidental also used the CMBS market for this purchase, obtaining a loan in the amount of $ 202.4 million to fund it, as previously reported by the Commercial Observer.

However, the developer acquired the property with the goal of eventually transforming it into a major Midwest campus to play and work and play, and one of the largest of its kind in the United States. It recently made significant progress in its expansion plans.

The property is located at: 6050-11501 Sprint Parkway in Overland Park, about 19 miles south of Kansas City and just a few blocks from the main carriageway on Interstate 435.

West property rebranding – which was originally modeled after Princeton Universitya sprawling campus and was known as Sprint World’s headquarters, according to the property’s website – as Aspiria in December 2020, planning to eventually invest hundreds of millions of dollars to leverage existing amenities to move it into the hub of live work and play. in Overland Park.

A firm from Wichita, Kansas. mixed zoning permits obtained from the local government in April, and is now ready to embark on plans for a large-scale reversal that will expand Aspiria’s area to 6.34 million square feet. Occidental’s preliminary plans call for the creation of approximately 1.1 million square feet of new office space, bringing the total floor space fully built to exceed 5 million square feet; the company also plans to add about 383,000 square feet of retail space, 600 apartment buildings and a 120-room hotel.

Overall, the new development will cover about 60 acres, and nearly 45 percent of the land, or about 92 acres, will be preserved as green space for residents, workers and the surrounding community.

Occidental said it wants to position the site as the second largest corporate campus in the country, competing with Microsoft’s 15 million square feet and 500 acres of Washington state campus. Kansas City Business Magazine reported in May.

Currently, about 75 percent of Aspiria is leased to over 30 renters, of which the five largest are T-Mobile. New Directions in Behavioral Health, medical billing company Doctor’s office partners, retirement plan provider Expanding retirement opportunities and TreviPayThey all account for over 60 percent of the asset’s total base rent, according to KBRA.

Mac Burke can be reached at: mburke@commercialobserver.com

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