SAN FRANCISCO-CBRE says it has arranged $32.5 million in non-recourse financing for two properties in the San Francisco Bay Area. The CBRE Debt & Equity Finance Producers, John Nelson, EVP and Michael Walker, VP of CBRE's San Francisco office, worked to originate the loans on behalf of a local property investor / developer. CBRE placed the financing with two separate institutional lenders.
The loan proceeds were used to refinance a single-tenant medical office building located in San Rafael, and a multi-tenant general office building located in the South Financial District of San Francisco.
Both financings carry very competitive interest rates, which are fixed for 10 years and based over the 10 year swap rate. The San Rafael office building will be amortized over a 30 year schedule, while the San Francisco building is interest-only throughout the entire term. Both loans are non-recourse.
“These financings were very sought after by numerous capital sources because of the assets' performance, strong market and experienced sponsorship,” said Nelson. “We delivered the best capital solution to the borrower for both assets, which satisfies the borrower's immediate and long-term financing objectives.”
The South Financial District of San Francisco is one of the strongest office submarkets within the Bay Area, achieving some of the highest rents in the market and a very low vacancy rate. San Rafael is an affluent Bay Area suburb, located approximately 15 miles north of San Francisco in Marin County.
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