San Francisco, CA – December 8, 2014 – CBRE Capital Markets’ Debt & Structured Finance team has secured $16.7 million in non-recourse financing in Daly City, California for two separate properties; a medical office located at 901 Campus Drive, and a retail center located at 2201 Junipero Serra Boulevard.
Michael Walker and Jim Korinek of CBRE’s San Francisco, California, office arranged the financing on behalf of the borrowers. CBRE secured flexible, floating-rate financing for 901 Campus Drive from a national bank while 2201 Junipero Serra Boulevard was financed by a Wall Street lender that will securitize the loan. In both instances, the loan proceeds were used to facilitate the acquisition of the properties for two separate buyers.
901 Campus Drive is a 75,559-square-foot multi-tenant medical office building. Tenants of the property include Palo Alto Medical Foundation, Campus Surgery Center and a consortium of other private physician practices. The property benefits from being located in proximity to Seton Medical Center and freeway transportation. The $8.2 million loan is a LIBOR based, adjustable-rate mortgage with very favorable terms.
2201 Junipero Serra is a 26,900-square-foot retail center leased to DaVita Healthcare Partners Inc., Dunn Edwards Paint and Nor Cal Veterinary Emergency and Specialty Hospital. The property has excellent visibility from the adjacent 280/1 Freeway. The $8.5 million loan is a 10-year fixed-rate loan with extremely competitive terms.
“Lenders were attracted to both opportunities for different reasons. However, in both cases, lenders were fond of the strong demographics in Daly City and the proximity to San Francisco. Located on the Peninsula, Daly City is a very nice community sandwiched between two of the strongest real estate markets in the Bay Area. Long term, Daly City is a submarket with potential for significant growth,” said Mr. Walker.
Daly City is located in San Mateo County along the San Francisco Peninsula. San Mateo County boasts an unemployment rate of 4.1%, the second lowest rate by county in the Bay Area. 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.