San Francisco, CA – November 23, 2015 – CBRE Capital Markets’ Debt & Structured Finance team has arranged $14.2 million in non-recourse financing for the acquisition of Castro Commons, a two building, 42,732-square-foot office complex in Mountain View, California.
Michael Walker and Brad Zampa of CBRE’s San Francisco office, arranged the 10-year, fixed-rate financing on behalf of the client, an entity owned and managed by Peninsula Land & Capital. The non-recourse, balance sheet financing represented 70% of the purchase price and was originated by an East Coast based Life Insurance Company.
Mr. Walker commented, “Life company lenders are often times hesitant to finance real estate encumbered by a ground lease. We were successful in finding the outlier balance sheet execution that represents 70% leverage at a very compelling interest rate and is fixed-rate for 10 years.”
Located at 1172 & 1174 Castro Street, the two building, two-story office complex is adjacent to the Downtown/Castro Street core, one of the most highly sought after and dynamic submarkets in Silicon Valley with numerous dining, shopping, working, and living options. Castro Commons is within walking distance to the heart of downtown and in proximity to the CalTrain station.
The property, which contains an underground parking garage, is currently 96% leased to nine tenants. Built in 1993, the buildings have a strong historical occupancy and are part of a limited supply of high-quality office and medical/dental suites in the area.
Peninsula Land & Capital is a private equity commercial real estate investment firm with a focus on acquisitions and dispositions of office/R&D buildings in Silicon Valley and the greater Bay Area. The non-recourse financing was provided by Guggenheim Commercial Real Estate Finance, LLC.
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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.