CBRE Capital Markets Arranges $86.5 Million in Financing for 128,678 – SQ. FT. Office Building in Stanford Research Park, Palo Alto, CA

San Francisco, CA – June 17, 2014 – CBRE Capital Markets’ Debt & Structured Finance team recently arranged $86.5 million in non-recourse financing for the acquisition of 3175 Hanover St, a 128,678-square-foot, single-tenant office building, leased to Cooley LLP, an esteemed global law firm. The asset is located in the prestigious Stanford Research Park, which is home to many companies such as VMware, Hewlett-Packard, and Tesla’s HQ and research facility.

John Nelson of CBRE’s San Francisco office arranged the acquisition financing on behalf of the borrower, a Sand Hill Property Company joint venture. The financing was provided by a Wall Street lender.

Of the financing, Mr. Nelson said, “This was one of the most competitive financing situations I have seen in quite some time. The intense competition among lenders was a direct function of the strong location and tenancy of the prospect in addition to the excellent sponsorship.”

Stanford Research Park was developed by Stanford University starting in 1951. It was the first of its kind and became the pillar of which evolved into Silicon Valley. Over the years it has been home to some of the most successful and respected companies in the world. Today it boasts a world-class reputation as one of the largest and best known research parks. It encompasses 700 acres, has 10 million square feet spread out in 160 buildings and facilities, and its 150 companies employs over 23,000 people. It is located directly adjacent to the Stanford University campus.

The Greater Palo Alto area has benefited greatly due to its proximity to a large employee talent pool and increased Venture Capital funding. Last year, the Silicon Valley region received the largest portion of overall Venture Capital funding for a single region ever tracked, with the area taking 41.3% of the $29 billion invested nationally. Moving further into 2014, the market will likely continue to see positive fundamentals as it remains one of the most attractive places for companies to start and grow.

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 (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.

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