SAN FRANCISCO—Although it is an oft-used cliché, the Bay Area shows no real signs of cooling off anytime soon, judging by some of the larger recently closed transactions. Ranging from $145 million to $31 million and throughout San Francisco, Silicon Valley and the East Bay, financing and acquisitions show constant and steady activity as long-term and institutional players continue to identify opportunities.
“West Coast markets, and especially the Bay Area, are continuing to be at the top of many investors' lists for acquisition and development,” Kelvin Tetz, partner, Moss Adams Real Estate, tells GlobeSt.com. “While today's prices are taking some players out of the market, many long-term-oriented and larger institutions are finding opportunities that fit with their investment objectives.”
Most recently, a construction loan was secured to fund a development project in Menlo Park. Square Mile Capital Management LLC originated a $145 million construction loan to be secured by an eight-story 210,000-square-foot office building, a 1,040-space parking structure and a 41,000-square foot fitness center. The project is part of the first phase of Menlo Gateway, a 16-acre master-planned development comprised of a 250-room Autograph Collection hotel currently under construction and a total of approximately 500,000 square feet of office space to be built in phases. The financing was arranged by John Kerslake and Briana Smith of NorthMarq Capital. It is being developed by The Bohannon Companies, which was represented by Manatt Phelps & Phillips LLP.
Square Mile Capital also originated a $70 million mortgage loan for two office buildings located at 657 and 667 Mission St. in San Francisco. The loan was made to a joint venture of San Francisco-based Align Real Estate and Vanke Holdings USA. The buildings total 130,000 square feet and are located in the south Financial District. CBRE Capital Markets arranged the $64.6 million sale of the two office buildings. CBRE's Mark Geisreiter, Russell Ingrum, Sean Sullivan, Tyler Meyerdirk and Matt Kroger represented the seller, Coast Counties Property Management. Brad Zampa, Mike Walker and Megan Woodring of CBRE arranged the loan.
And in Silicon Valley, Natixis provided a $75 million loan to Pollock Realty Corporation for the refinancing of three office buildings. The first property, 3495 Deer Creek Rd., is an 81,031-square-foot office building located in the Stanford Research Park in Palo Alto. The property is fully leased to EMC Corporation, which will be vacating in the near future. The next property, 3408 Hillview Ave., is a 56,279-square-foot office building that is also located in Stanford Research Park. The asset is 100% leased to SAP Labs. The last property in the portfolio is 350 Marine Parkway, a 34,796-square-foot office building located in the Redwood Shores region of Redwood City.
DivcoWest completed the purchase of 2 West Santa Clara, a historic office building in downtown San Jose. Terms of the transaction were not disclosed. The acquisition is part of a joint venture with an investment group led by Gary Dillabough. Built in 1910 and extensively renovated within the last few years as the headquarters of Bank of the West and, later, lumber company Pacific States Industries.
Ellis Partners, in a joint venture with Intercontinental Real Estate Corporation, acquired the vacant parcel in downtown Oakland known as 1100 Broadway. The acquisition includes the dilapidated, circa-1911 Key System headquarters building, which holds 34,000 square feet across seven floors of commercial space. The new ownership plans to build a new class-A office tower on the site, restore the vacant building to its original state and integrate the two. Key System Railway transported East Bay residents locally and across the lower deck of the Bay Bridge to San Francisco “back in the day”.
Holliday Fenoglio Fowler LP secured $35.75 million in bridge financing for the repositioning of Rossmoor Shopping Center, a 106,281-square-foot grocery-anchored retail center in Walnut Creek. HFF worked on behalf of the borrower, a partnership between Citivest Commercial LLC and Tallen Capital Partners LLC to secure the three-year, floating-rate loan.
An Equus Capital Partners Ltd. affiliate has acquired Walsh Bowers, a two-building class-B office/R&D portfolio totaling 106,500 square-feet, located in the Santa Clara submarket, for $31.55 million. The acquisition was made on behalf of Equus Investment Partnership X LP. Adam Lasoff, Steve Herman and Eric Fox of Cushman and Wakefield represented the seller, Swift Real Estate Partners, in the transaction.
SAN FRANCISCO—Although it is an oft-used cliché, the Bay Area shows no real signs of cooling off anytime soon, judging by some of the larger recently closed transactions. Ranging from $145 million to $31 million and throughout San Francisco, Silicon Valley and the East Bay, financing and acquisitions show constant and steady activity as long-term and institutional players continue to identify opportunities.
“West Coast markets, and especially the Bay Area, are continuing to be at the top of many investors' lists for acquisition and development,” Kelvin Tetz, partner, Moss Adams Real Estate, tells GlobeSt.com. “While today's prices are taking some players out of the market, many long-term-oriented and larger institutions are finding opportunities that fit with their investment objectives.”
Most recently, a construction loan was secured to fund a development project in Menlo Park. Square Mile Capital Management LLC originated a $145 million construction loan to be secured by an eight-story 210,000-square-foot office building, a 1,040-space parking structure and a 41,000-square foot fitness center. The project is part of the first phase of Menlo Gateway, a 16-acre master-planned development comprised of a 250-room Autograph Collection hotel currently under construction and a total of approximately 500,000 square feet of office space to be built in phases. The financing was arranged by John Kerslake and Briana Smith of NorthMarq Capital. It is being developed by The Bohannon Companies, which was represented by
Square Mile Capital also originated a $70 million mortgage loan for two office buildings located at 657 and 667 Mission St. in San Francisco. The loan was made to a joint venture of San Francisco-based Align Real Estate and Vanke Holdings USA. The buildings total 130,000 square feet and are located in the south Financial District. CBRE Capital Markets arranged the $64.6 million sale of the two office buildings. CBRE's Mark Geisreiter, Russell Ingrum, Sean Sullivan, Tyler Meyerdirk and Matt
And in Silicon Valley,
DivcoWest completed the purchase of 2 West Santa Clara, a historic office building in downtown San Jose. Terms of the transaction were not disclosed. The acquisition is part of a joint venture with an investment group led by Gary Dillabough. Built in 1910 and extensively renovated within the last few years as the headquarters of
Ellis Partners, in a joint venture with Intercontinental Real Estate Corporation, acquired the vacant parcel in downtown Oakland known as 1100 Broadway. The acquisition includes the dilapidated, circa-1911 Key System headquarters building, which holds 34,000 square feet across seven floors of commercial space. The new ownership plans to build a new class-A office tower on the site, restore the vacant building to its original state and integrate the two. Key System Railway transported East Bay residents locally and across the lower deck of the Bay Bridge to San Francisco “back in the day”.
Holliday Fenoglio Fowler LP secured $35.75 million in bridge financing for the repositioning of Rossmoor Shopping Center, a 106,281-square-foot grocery-anchored retail center in Walnut Creek. HFF worked on behalf of the borrower, a partnership between Citivest Commercial LLC and Tallen Capital Partners LLC to secure the three-year, floating-rate loan.
An Equus Capital Partners Ltd. affiliate has acquired Walsh Bowers, a two-building class-B office/R&D portfolio totaling 106,500 square-feet, located in the Santa Clara submarket, for $31.55 million. The acquisition was made on behalf of Equus Investment Partnership X LP. Adam Lasoff, Steve Herman and Eric Fox of Cushman and Wakefield represented the seller, Swift Real Estate Partners, in the transaction.
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