San Francisco, Calif. (May 29, 2019) – CBRE Capital Markets’ Debt & Structured Finance team has secured $21 million in financing from a New York based life insurance company to refinance 2 East Third Avenue, a 100% leased 25,000-square-foot (sq. ft.) Class A office building located in the central business district of downtown San Mateo, CA.
Michael Walker, Brad Zampa, Megan Woodring, and Taylor Shepard of CBRE’s downtown San Francisco office arranged the 10-year fixed-rate loan at a very competitive spread priced over 10-year treasuries on behalf of an entity owned and controlled by Windy Hill Property Ventures.
“We are thrilled with the outcome at 2 East Third. We brought an East Coast based life insurance lender to the table who traditionally hadn’t lent much in our markets,” said Walker, senior vice president. “They had been looking to build out their investment portfolio with top tier regional sponsors on newer construction assets. Ultimately, they were able to beat out a number of banks, life companies and other fixed rate lenders by offering flexibility and a best in class interest rate. “We continue to bring capital from across the country into our Bay Area markets as lenders are aggressively looking for exposure to our dynamic economy and stable property market.”
Built in 2016, 2 East Third Avenue features modern office interior finishes, efficient floor plates, plentiful natural light amidst expansive windows and a private roof deck. Motif Investing, Inc, an online broker-dealer, leases 100% of the three-floor office space with SoulCycle leasing the retail suite on the ground-floor.
2 East Third Avenue is ideally positioned on San Francisco’s Peninsula and surrounded by innovative companies including Oracle, DreamWorks, Tesla and Sony Computer Entertainment, who have all made long-term commitments to the Peninsula. Furthermore, the property is situated next to the downtown San Mateo Caltrain Station, providing easy access to San Francisco and Silicon Valley. With ample food and beverage amenities combined with notoriously high barriers to entry and a lack of developable land, the vacancy rate of comparable Class A office product in the downtown San Mateo submarket has dropped below 5%. 2 East Third Avenue is one of the only premier Class A office properties in the submarket.About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2018 revenue). The company has more than 90,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 480 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.