MILPITAS, CA–A 181,800-square-foot Class B research and development industrial property has received a loan of $26.2 million. The credit facility will consist of a $12.4 million short-term loan along with future funding of $13.8 million for capital expenditures, tenant improvements, leasing commissions and other expenses. Calmwater Capital, a Los Angeles-based provider of commercial real estate debt formerly known as Karlin Real Estate Lending, has provided the loan to Stephens & Stephens LLC.
Larry Grantham, portfolio manager of Calmwater Capital, tells GlobeSt.com: “We launched Calmwater Capital as a means to introduce to the marketplace a partnership between Karlin's trusted financing and new funding lines that have greatly increased our capacity to identify and execute deals such as this one. Just as our debt basis was attractive to Stephens and Stephens, their plan fits perfectly with our business model and the types of deals we seek going forward as Calmwater Capital.”
The Milpitas industrial market experienced steady growth in early 2015, with increasing demand for industrial space driving up rents. Situated on the high traffic Interstate 880, the property is uniquely positioned as a transportation hub between Oakland and San Jose.
“This is a prime investment opportunity in Silicon Valley, which is experiencing explosive growth. The loan will allow the owner time to renovate and re-lease the property at market rates. We have no doubt it will bring a healthy return,” says Grantham.
An active investor and principal in a variety of real estate assets including commercial and single family residential land, D.R. Stephens & Company organized Stephens & Stephens, LLC in 1999 to invest specifically in industrial R&D/office real estate in the greater Bay Area. The property is one of 30 in the company's portfolio.
D. R. Stephens & Company was organized in 1973 in San Francisco, to consolidate and manage the real estate investment activities of the Stephens family. In 1999, Stephens & Stephens LLC, managed by Donald R. Stephens and Lane B. Stephens, was organized to invest in industrial R&D/office real estate in the greater Bay Area. The purpose of the firm was not only to continue to provide investment opportunities for the Stephens family investment entities, but to include outside partners and to generate substantial cash flow distributions and equity growth through ownership and repositioning of high quality assets. The firm now sees the greatest opportunities in the acquisition of Bay Area industrial/office and R&D buildings. The firm is also active in large scale, single family residential land opportunities in the Bay Area and the Central Valley.
In the first quarter of 2015, Calmwater Capital closed six loans totaling $161 million and is on track to close $93 million during the second quarter. The company, which was originally founded in 2010 as Karlin Real Estate Lending, has originated more than $900 million in senior and mezzanine loans on office, industrial, retail, multi-family, hospitality and land.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
