CBRE Secures $25.5MM Financing for Valley Creative Center in San Jose

CBRE, San Jose, San Francisco, Valley Creative Center, Vista Investment Group, Silicon Valley, Northern California, office space

CBRE, San Jose, San Francisco, Valley Creative Center, Vista Investment Group, Silicon Valley, Northern California, office space

(EDITOR’S NOTE: Vista Investment Group purchased the portfolio in February of 2016 for $36 million from Prologis, or just over $215 per square foot.)

SAN FRANCISCO, CA – June 14, 2017 – CBRE Capital Markets’ Debt & Structured Finance team has secured $25,500,000 financing for Valley Creative Center, a six building, 166,928-square-foot office/R&D portfolio located in San Jose, CA.

CBRE arranged the non-recourse financing at a very competitive spread designed with a flexible prepayment structure. The financing was provided by a Life Company, with whom CBRE has a longstanding relationship.

Brad Zampa, Michael Walker, Megan Woodring and Taylor Shepard of CBRE’s downtown San Francisco office arranged the financing on behalf of the borrower, Vista Investment Group.

“Our team continues to successfully create new lending relationships for our clients, and procure aggressively priced creative non-recourse financings, while pushing both leverage and interest only terms,” said Michael Walker, Senior Vice President, CBRE Capital Markets.

The 11.75-acre site is located in the heart of Silicon Valley’s prestigious “Golden Triangle,” at the intersection of Zanker Road and Charcot Avenue just off Interstate 880. The property encompasses a full city block and is currently 100 percent leased to a diverse, multi-tenanted rent roll.

“This is a great property and we believe very strongly in the location, as San Jose continues to strengthen as a high tech submarket. We expect the deal to be a long term successful investment for Vista,” shared Jonathan Barach, President, Vista Investment Group.

The Silicon Valley market continues to experience strong leasing activity, particularly in the northern submarkets where high-quality, tech-focused space is available at more competitive rates. According to CBRE Research, the overall asking average office lease rate for Q1 2017 increased for the 26th consecutive quarter to $4.76 FSG (Full Service Gross), a 0.6% increase, quarter-over-quarter. Silicon Valley posted positive occupancy gains for the 16th straight quarter with 419,162 sq. ft. of net absorption.

Based in San Francisco, Brad Zampa and Mike Walker are partners on CBRE Capital Markets’ Northern California Institutional Properties team, focusing on debt and structured finance transactions throughout the West Coast. The team also includes six investment sales experts in the region: Russell Ingrum, Joe Moriarty, Scott Prosser, Tyler Meyerdirk, Seth McKinnon and Jack DePuy. CBRE Capital Markets’ Northern California team provides investment advisory and debt and structured finance solutions for institutional investors, private capital and corporate owners/users.

About Vista Investment Group, LLC
Vista Investment Group, LLC (VIG) is a privately held commercial real estate investment firm founded by Philip and Jonathan Barach. Headquartered in Los Angeles, the company is primarily focused on value-add strategies in multi-family and office in major West Coast markets.

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 (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 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.

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