CBRE Capital Markets Secures $11.15MM in Financing for Foster City Medical Pavilion

San Francisco, CA – June 2, 2014 – CBRE Capital Markets’ Debt & Structured Finance team today announced that it has secured $11.15 million in non-recourse financing for Foster City Medical Pavilion, a 39,842-square-foot medical office building located in Foster City, CA.

Michael Walker, Vice President, of CBRE’s San Francisco office, arranged the financing on behalf of Swift Real Estate Partners. CBRE placed the financing with a publicly traded mortgage REIT.

The loan proceeds were used to acquire the approximately 50% leased multi-tenant medical office building. The loan was structured to finance capital expenditures with a secondary funding for 100% of the projected tenant improvements and leasing commissions. The non-recourse loan, which represents 60% of the borrower’s cost to acquire, upgrade and re-tenant the building, is interest-only for the duration of the term and carries an attractive floating-rate spread with prepayment flexibility.

“We received substantial lender interest for the financing of Foster City Medical Pavilion,” said Mr. Walker. “Lenders were attracted to the combination of excellent sponsorship and a Class A property in a top-tier peninsula submarket with in-place cash flow at a fraction of replacement cost. Swift is a premier Bay Area real estate operator with a proven track record executing value-add investments. Ultimately, we custom tailored a financing structure that coincides well with the sponsor’s strategy to improve and stabilize the asset.”

Foster City is located in San Mateo County along the San Francisco Peninsula, a highly coveted market within the Bay Area. Foster City boasts an unemployment rate of 3.9% and San Mateo of 5.9%, the second lowest rate by county in the state. San Mateo is home to 18 of the largest software companies in the Bay Area, as well as 18 of the largest venture capital firms (ranked by revenue).

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.

West Coast Commercial Real Estate News