San Francisco, CA – March 31, 2015 – CBRE Capital Markets’ Debt & Structured Finance team has arranged $19.75 million in permanent financing for 260 California Street, a 12-story, historic brick office building located in San Francisco’s Financial District.
Brad Zampa, Michael Walker and Megan Woodring of CBRE’s San Francisco office arranged the financing on behalf of the borrower, an entity owned by Swift Realty Partners. CBRE arranged the 10-year, non-recourse, fixed-rate, partial-term interest-only financing at a very competitive rate of approximately 4%. The financing was provided by a foreign bank.
“The debt markets continue to surprise us to the upside with significant lender competition across the capital stack, said Brad Zampa, Executive Vice President. “Our client was thrilled to be able to execute a full-leverage, cash-out refinance for 10 years at historically low interest rates.”
260 California is situated one block from Market Street, at the corner of California and Battery streets in the heart of the Financial District. San Francisco boasts an unemployment rate of 3.9% which is among the lowest rate in the state. In addition, the San Francisco office market has outperformed all other major office markets nationally over the past 10 quarters with the lowest downtown vacancy of the top markets in the nation at 6.6%.
“260 California is a classic Swift investment,” added Mike Walker, Vice President. “Swift buys great real estate at a comfortable basis, improves the asset and increases cash flow, creating value for both their tenants and their investors.”
About Swift Real Estate Partners
Swift Real Estate Partners is an independent and vertically integrated real estate investment firm which seeks to generate attractive risk-adjusted returns for its investors. Focusing on the West Coast, Swift selectively acquires and repositions office and industrial assets. Swift Real Estate Partners is based in San Francisco.
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 2014 revenue). The Company has more than 52,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 370 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.