San Francisco and Newport Beach, CA – April 1, 2013 – Buchanan Street Partners has funded a $14 million mezzanine loan for an 11-story, 140,657-square-foot office building at 1155 Market Street in downtown San Francisco.
An entity controlled by Laurus Corporation, a Los Angeles-based investor, has owned the building since 2011. The City of San Francisco Public Utilities Commission (PUC) previously leased the entire building, and Laurus has overseen the re-tenanting of the building to several City of and County of San Francisco agencies.
Buchanan Street structured the loan as subordinate financing due to the first lien position of a pre-existing CMBS loan that was in place when Laurus acquired the property. The new loan will be used to fund leasing costs as the City and County of San Francisco occupy nine of the eleven floors in the building, or 82% of the total leasable area, over the next several months. Loan proceeds will also be applied toward tenant improvements for the remaining two floors and for property upgrades.
“Our longstanding relationship with the principals at Laurus gave us a high degree of confidence in the firm’s ability to complete its negotiations with the City and County of San Francisco,” said Mike Hurst, senior director of investments at Buchanan Street Partners. “The borrowers have proven expertise and a sound business plan in place, and the San Francisco office market continues to show fundamental improvement.”
Buchanan Street is actively seeking investment, joint venture and lending opportunities on all asset classes in the greater San Francisco MSA.
About Buchanan Street Partners
Buchanan Street Partners is a real estate investment management firm that invests debt and equity capital on behalf of institutional and private investors. www.buchananstreet.com