(EDITOR’S NOTE: According to sources familiar with the details of the transaction, Align and Vanke purchased the properties for just over $496 per square foot, or roughly $64.6 million in total for the two buildings. Square Mile declined to comment on the loan, other than what was stated in the press release. An earlier report indicated the sale was $100 million, which incorrectly estimated the full allocation of the loan. The full $70 million loan also includes funding for renovation as well as anticipated future leasing costs.
CBRE’s team also sold the buildings on behalf of the prior owners. They were represented by Mark Geisreiter, Russell Ingrum, Tyler Meyerdirk and Matt Kroger.)
Square Mile Originates $70.0 Million Acquisition Loan for Historic San Francisco Mission Street Office Buildings
New York City, March 8, 2017 – Square Mile Capital Management LLC (“Square Mile”) today announced that it has originated a $70.0 million mortgage loan for two office buildings located at 657 and 667 Mission Street in San Francisco, California.
The loan was made to a joint venture of San Francisco-based Align Real Estate and Vanke Holdings USA. Together with financing the acquisition of the buildings, the loan provides funding for their complete renovation as well as anticipated future leasing costs.
657 and 667 Mission Street total 130,000 square feet and are located between 3rd Street and New Montgomery Street in the South Financial District of San Francisco. The buildings are currently 65 percent occupied with short term leases allowing the new owners the flexibility to reposition the buildings as Class A creative office space with premier ground floor retail fronting Mission Street.
“This transaction represents an important step in the expansion of Square Mile’s lending platform on the West Coast and enables us to participate in an acquisition which has significant potential to further transform the streetscape along Mission Street,” commented Square Mile Principal Michael Mestel. “We were pleased to facilitate a quick closing for the owners, whom we consider very well-suited to maximize the buildings’ value while drafting off the strong real estate fundamentals that continue to define San Francisco’s South Financial District.”
657 and 667 Mission Street are located just 1.5 blocks from the Montgomery BART station, 1 block from the new Transbay Transit Center, and are also directly behind the San Francisco Museum of Modern Art, one of the largest museums in the world for modern and contemporary art. With convenient proximity to many of the city’s most popular restaurants like Ame, Trou Normand, Mourad, Benu and Hakkasan, high-end hotels such as the St. Regis, The Palace, the W, Four Seasons, Mandarin Oriental and Park Central, and some of San Francisco’s newest luxury residential developments, the properties offer a prime location in one of San Francisco’s most sought-after office and retail destinations.
Financing was arranged by Brad Zampa, Michael Walker and Megan Woodring of CBRE’s Debt & Structured Finance group.
About Square Mile Capital Management LLC
Square Mile Capital Management LLC is an integrated institutional real estate finance and investment management firm based in New York. The firm’s commercial real estate debt platform provides customized capital solutions for real estate assets throughout the United States. Square Mile’s opportunistic platform takes a value-oriented approach to its investment activities, with an emphasis on opportunities to invest in real estate assets or enterprises that are undervalued, complex or under-capitalized.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2015 revenue). The company has more than 70,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services.