San Francisco, CA (March 6, 2019) — Newmark Knight Frank (NKF), on behalf of Lane Partners and Bay West Development, has secured $40.7 million in nonrecourse construction financing and preferred equity for the development of 311 Mathilda Street, a 75-unit multifamily project located in downtown Sunnyvale, California. California Bank and Trust provided the first mortgage construction loan, while PCCP provided the preferred equity investment. Lane Partners and Bay West have secured entitlements for the project and will begin construction in the second quarter of 2019.
NKF Senior Managing Director Chris Moritz and Vice Chairman Ramsey Daya represented the borrower in the financing efforts.
“The project’s incredible infill location within the Silicon Valley, a short walk from the Sunnyvale Caltrain station, as well as the combined strength and experience of Lane and Bay West resulted in a strongly contested financing process,” Moritz said. “Both California Bank and Trust and PCCP separated themselves from the market by demonstrating a firm understanding of the local multifamily market and delivered very favorable terms for the borrower.”
The five-story building will feature luxury amenities for residents, including an elaborately landscaped courtyard and roof deck, as well as a state-of-the-art fitness center and clubhouse. Select units will also enjoy private terraces with unobstructed views of the surrounding mountains.
“Even in an environment of escalating building costs, we continue to see strong interest from the debt markets for well-located multifamily construction opportunities. The result here was that we were able to execute another core development deal that exceeded our clients’ expectations,” said Daya.
Located in downtown Sunnyvale, within the heart of the Silicon Valley, 311 Mathilda will provide tenants direct proximity to one of the largest concentrations of high profile corporate users and technology stalwarts in the world. Additionally, 311 Mathilda is within walking distance from high-end retail and restaurants with over 75 national and boutique eateries and shopping options.About Newmark Knight Frank
Newmark Knight Frank (“NKF”), operated by Newmark Group, Inc. (“Newmark Group”) (NASDAQ: NMRK), is one of the world’s leading and most trusted commercial real estate advisory firms, offering a complete suite of services and products for both owners and occupiers. Together with London-based partner Knight Frank and independently-owned offices, NKF’s 16,000 professionals operate from approximately 430 offices on six continents. NKF’s investor/owner services and products include investment sales, agency leasing, property management, valuation and advisory, diligence, underwriting, government-sponsored enterprise lending, loan servicing, debt and structured finance and loan sales. Occupier services and products include tenant representation, real estate management technology systems, workplace and occupancy strategy, global corporate services consulting, project management, lease administration and facilities management. For further information, visit www.ngkf.com.