San Francisco – January 5, 2016 – CBRE Capital Markets’ Debt & Structured Finance team has secured $8.8 million in non-recourse financing for 610 Walnut Street, a vacant, 12,800-square-foot, two-story, downtown office building prominently located in Redwood City, California.
Michael Walker of CBRE’s San Francisco office arranged the financing on behalf of an entity owned by Windy Hill Property Ventures in connection with their off-market acquisition of the property. CBRE secured the fixed-rate financing from an East Coast-based life insurance company. The six-year, balance sheet financing is priced aggressively on a fixed-rate basis and has a flexible step-down prepayment structure.
“The life company balance sheet financing we secured for Windy Hill really is an outlier; The loan provides for 80% of total cost to acquire, reposition and re-tenant the building at terms that are priced well inside where most lenders would transact,” said Mr. Walker. “Life companies don’t traditionally finance vacant office buildings. The lender’s attraction to this deal is a testament to the talented team at Windy Hill and the strength of the Redwood City submarket.”
The property is located near the intersection of two main Redwood City arteries—Veterans Boulevard and Main Street—offering convenient access to numerous restaurants, retailers and a thriving downtown commercial center. It is adjacent to the Kaiser Permanente Redwood City Medical Center Hospital and benefits from convenient access to public transportation; located within one mile from the Cal-Train Sequoia station, and half a mile to the Highway 101 on-ramp.
Based on tenant demand, existing leasing activity and developer/investor interest, the San Francisco Peninsula area surrounding the Property is poised for continued growth and investment. Technology tenants continue to grow and occupy available office space in the Peninsula submarkets putting upward pressure on asking rents.
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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 2014 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 400 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.