San Francisco, CA – December 14, 2015 – CBRE Capital Markets’ Debt & Structured Finance team has secured $47 million in non-recourse financing for The New Californian, a mixed-use development with 148 apartment units and 15,700 square feet of retail space in Berkeley, California.
John Nelson, Michael Walker and Erik Franks of CBRE’s San Francisco, California, office arranged the financing on behalf of local developer and investor, Hudson McDonald, who originally built the project in 2010. Metropolitan Life Insurance Company provided the 10-year, non-recourse, fixed-rate loan with very favorable terms.
“The New Californian is one of the most attractive multifamily properties in the city of Berkeley,” said Mr. Walker. “The property offers convenient access to shopping via the ground floor Trader Joe’s, numerous amenities including bike storage and private parking, and one of the best panoramic views of San Francisco atop it’s resort-style roof deck. The property performs extremely well given the quality of construction, along with its proximity to UC Berkeley and various methods of transportation (BART, bus lines, and I-80/I-580).”
Located at 1988 Martin Luther King Jr. Way, The New Californian is approximately three blocks from The University of California, Berkeley. In addition to UC Berkeley, the property is walking distance to the downtown area, which offers residents easy access to restaurants, shops and the Downtown Berkeley BART station.
“The New Californian was a sought after financing investment by numerous capital sources and benefited from an exceptional location, continually high occupancy and experienced sponsorship,” said Mr. Nelson.
The city of Berkeley is nearing full employment and home prices are growing at near double-digit rates. Consistent demand for housing from students at UC Berkeley, as well as a strong overall economy has fueled the strong performance of this project, maintaining close to 100% occupancy alongside year-over-year rent growth.
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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.