San Francisco, CA – November 24, 2014 – CBRE Capital Markets’ Debt & Structure Finance team has arranged $16 million in non-recourse financing for Edgewood Plaza Shopping Center, a 35,000-square-foot retail center in Palo Alto, California.
John Nelson of CBRE’s San Francisco office arranged the financing on behalf of the borrower, a Sand Hill Property Company affiliate. The financing was provided by a Wall Street lender and was used to refinance the property.
Of the financing, Mr. Nelson commented, “Edgewood Plaza’s infill location in Palo Alto—with high barriers to entry—led to a fast leasing of the center. This, combined with Sand Hill’s development expertise, led to very favorable long-term
Anchored by The Fresh Market grocery store, Edgewood Plaza Shopping Center is adjacent to the Interstate 101 on ramp. The recently completed center has signed leases with several tenants including Chase Bank, Starbucks and Palo Alto Bagels, and will cater to the numerous surrounding residential neighborhoods.
According to CBRE Econometric Advisors, the San Jose/Silicon Valley retail market is currently very strong. Vacancy rates are below 5.0% and continue to decline, while rental rates continue to increase. Retail sales in the San Jose market have grown at an annual rate of 6.8% and are forecasted to grow at an annual rate of 4.0% over the next five years.
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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 (in terms of 2013 revenue). The Company has approximately 44,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through approximately 350 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.