MOUNTAIN VIEW, CA—If there was any doubt that property in Mountain View is valuable, a recent refinancing and rare development project should dispel those notions. A 193-unit multifamily asset located near the Google headquarters just received funding to the tune of $88.268 million in debt to refinance the property. The 174,515-square-foot building was built in late 2015.
Jake Roberts and Anita Paryani Rice of Institutional Property Advisors Capital Markets, both senior vice president capital markets, arranged the loan. Roberts said the situation was special due to the desire for leverage and the non-stabilized nature of this asset.
Roberts tells GlobeSt.com: “The full value of any stabilizing asset is fluid, even if it's in a robust rental market like Silicon Valley.”
The 10-year loan has a fixed interest rate with five years of interest only. The amortization schedule is 30 years and the loan-to-value is 65%.
“The biggest hurdle was ensuring that lenders used a stabilized property value to maximize proceeds,” said Rice. “IPA provided the borrower with a number of lenders that were willing to see the full potential of the asset without it being fully stabilized.”
In another example of Mountain View's value and popularity, leasing has begun on the newest class-A office building, 600 National. The 152,000-square-foot building represents the only available large-block leasing opportunity in this supply-constrained city.
Located adjacent to Highway 101 with nearby access to Highways 237 and 85, 600 National is blocks from the future headquarters property LinkedIn recently acquired in the Google property trade. The majority of the buildings surrounding the property are occupied by major tenants including Google, Honda, Samsung, Siemens, Symantec and Synopsys.
“Seeing our state-of-the-art building completed is extremely gratifying,” said Randy Lamb, principal of development team National Avenue Partners LLC. “We initially targeted this property for development 15 years ago, and over the years have watched some of Silicon Valley's most prominent tech innovators commit to and invest in this neighborhood. 600 National is a truly unique opportunity in a compelling location.”
With asking rents 25% lower than Mountain View's downtown market, there is value in locating in the Middlefield submarket, a quick shuttle ride away from downtown. The transit-oriented property lies one block from an MVgo Shuttle stop with free service to downtown Mountain View and the Caltrain station. The Bayshore/NASA and Middlefield VTA light rail stations are also a short walk from 600 National. In addition, a large parking structure offers ample on-site parking.
“The Middlefield submarket is well established,” said Phil Mahoney, a Newmark Cornish & Carey executive managing director marketing the property for lease with executive vice president Randy Gabrielson and senior managing director Mike Saign. “Mountain View's most elite technology tenants have cemented themselves there, which ensures continued strength and enhances tenant appeal. National Avenue Partners fully realized its meaningful vision at 600 National.”
Large, open floor plates on four floors encourage collaboration as do outdoor amenity spaces and four outdoor decks. The LEED Gold-compliant property features electric vehicle charging stations, bike storage and on-site showers. Prominent building signage facing Highway 101 is also available.
MOUNTAIN VIEW, CA—If there was any doubt that property in Mountain View is valuable, a recent refinancing and rare development project should dispel those notions. A 193-unit multifamily asset located near the
Jake Roberts and Anita Paryani Rice of Institutional Property Advisors Capital Markets, both senior vice president capital markets, arranged the loan. Roberts said the situation was special due to the desire for leverage and the non-stabilized nature of this asset.
Roberts tells GlobeSt.com: “The full value of any stabilizing asset is fluid, even if it's in a robust rental market like Silicon Valley.”
The 10-year loan has a fixed interest rate with five years of interest only. The amortization schedule is 30 years and the loan-to-value is 65%.
“The biggest hurdle was ensuring that lenders used a stabilized property value to maximize proceeds,” said Rice. “IPA provided the borrower with a number of lenders that were willing to see the full potential of the asset without it being fully stabilized.”
In another example of Mountain View's value and popularity, leasing has begun on the newest class-A office building, 600 National. The 152,000-square-foot building represents the only available large-block leasing opportunity in this supply-constrained city.
Located adjacent to Highway 101 with nearby access to Highways 237 and 85, 600 National is blocks from the future headquarters property
“Seeing our state-of-the-art building completed is extremely gratifying,” said Randy Lamb, principal of development team National Avenue Partners LLC. “We initially targeted this property for development 15 years ago, and over the years have watched some of Silicon Valley's most prominent tech innovators commit to and invest in this neighborhood. 600 National is a truly unique opportunity in a compelling location.”
With asking rents 25% lower than Mountain View's downtown market, there is value in locating in the Middlefield submarket, a quick shuttle ride away from downtown. The transit-oriented property lies one block from an MVgo Shuttle stop with free service to downtown Mountain View and the Caltrain station. The Bayshore/NASA and Middlefield VTA light rail stations are also a short walk from 600 National. In addition, a large parking structure offers ample on-site parking.
“The Middlefield submarket is well established,” said Phil Mahoney, a Newmark Cornish & Carey executive managing director marketing the property for lease with executive vice president Randy Gabrielson and senior managing director Mike Saign. “Mountain View's most elite technology tenants have cemented themselves there, which ensures continued strength and enhances tenant appeal. National Avenue Partners fully realized its meaningful vision at 600 National.”
Large, open floor plates on four floors encourage collaboration as do outdoor amenity spaces and four outdoor decks. The LEED Gold-compliant property features electric vehicle charging stations, bike storage and on-site showers. Prominent building signage facing Highway 101 is also available.
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