New York City, (January 17,2023) – Square Mile Capital Management LLC (“Square Mile Capital”) today announced the closing of a $373 million loan to finance the construction of the first phase of Southline, a mixed-use, transit-oriented life science development in South San Francisco near the city of San Bruno. The senior portion of the loan for the 370,000-square-foot project was provided by Bank OZK.
Southline is being developed by Lane Partners, a commercial real estate investment and development firm headquartered in Menlo Park, CA. Southline’s investment partners include Goldman Sachs Asset Management’s Real Estate group and an affiliate of Beacon Capital Partners. The financing was arranged by Matt Haden of Eastdil Secured’s San Francisco office.
“We continue to invest into purpose-built lab developments in the strongest life science markets in the country and Southline fits squarely within this objective,” said Square Mile Capital Managing Director Eric Cohen. “We are thrilled to again partner with Bank OZK, as well as affiliates of Goldman Sachs and Beacon, to help create what will be one of the Bay Area’s most prominent new life science projects.”
Southline will become one of the most transformational transit-oriented developments in the Bay Area. Located at 30 Tanforan Avenue in South San Francisco, the 28.5-acre site is adjacent to the San Bruno BART station just south of downtown San Francisco and also near San Francisco International Airport. Southline is adjacent to Highway 101 and near the San Bruno Caltrain and South San Francisco Caltrain Stations, allowing commuters easy access to downtown San Francisco (20-minutes) and San Jose (60-minutes.)
Upon completion, the first phase will feature six stories of state-of-the art lab and office space in addition to a six-story parking garage and amenities such as a fitness center, restaurant, conference facilities and bike storage.
About Square Mile Capital Management LLC
Square Mile Capital Management LLC is an integrated institutional real estate and investment management firm based in New York. The firm has an established history of successful investing in commercial real estate at all points in the market cycle. Square Mile Capital’s experience supplying flexible equity and debt capital solutions in diverse property sectors and across the risk spectrum, combined with its integrated national sourcing and investment platform, facilitates the creation of value for its investors, partners, borrowers and counterparties. Square Mile Capital’s commercial real estate debt platform provides customized capital solutions for real estate owners and developers throughout the United States utilizing its broad investment platform, product expertise and research resources. The firm seeks to identify the impact of long-term trends on real estate values and target its equity investments on key investment strategies likely to benefit from such trends. For more information, visit www.squaremilecapital.com.
About Bank OZK
Bank OZK (Nasdaq: OZK), through its Real Estate Specialties Group (RESG), provides financing on commercial real estate projects throughout the nation. RESG is considered a preeminent, market-leading construction lender focused on senior secured financing for a variety of property types including mixed use, multifamily housing, condominiums, office, hospitality, life sciences, industrial and retail. During the five years ended September 30, 2022, RESG originated approximately $39.33 billion in new loans. For more information, visit www.ozk.com.
About Lane Partners
Lane Partners was formed in January of 2006 for the purposes of acquiring, developing, and managing institutional quality real estate throughout Northern California. The expertise of the company lies within the ability to add value in a very cost-effective way including physical rehabilitations, lease up and re-structuring, entitlements and general repositioning of assets. Currently, Lane Partners has over nine million square feet under development, almost entirely in the Bay Area.
About Goldman Sachs Asset Management Real Estate
Bringing together traditional and alternative investments, Goldman Sachs Asset Management provides clients around the world with a dedicated partnership and focus on long-term performance. As the primary investing area within Goldman Sachs (NYSE: GS), we deliver investment and advisory services for the world’s leading institutions, financial advisors and individuals, drawing from our deeply connected global network and tailored expert insights, across every region and market—overseeing more than $2 trillion in assets under supervision worldwide as of September 30, 2022. Driven by a passion for our clients’ performance, we seek to build long-term relationships based on conviction, sustainable outcomes, and shared success over time. Goldman Sachs Asset Management invests in the full spectrum of alternatives, including private equity, growth equity, private credit, real estate and infrastructure. Established in 1991, the Real Estate business within Goldman Sachs Asset Management is one of the largest investors in real estate with over $50 billion in capital invested since 2012 across the spectrum of investment strategies from core to opportunistic. Our global team invests across all sectors with deep expertise across the capital structure, in assets ranging from single properties to large portfolios, through senior mortgages, mezzanine debt and equity. Follow us on LinkedIn.
About Beacon Capital Partners
Beacon Capital Partners is a tenant-focused private real estate investment firm with a legacy of successful real estate development, ownership, and management dating back over 75 years. Beacon invests in high-quality office and life science properties in core markets with highly educated workforces. Beacon has refined a proprietary investment sourcing model and developed a robust operating platform to transform properties into distinctive workplaces that attract today’s tenants. This hands-on approach transforms properties through innovative design, state-of-the-art connectivity, modern amenities, risk management and award-winning sustainability initiatives. From Fortune 100 firms to the leading innovative and growth companies, Beacon’s tenants are proud to call its distinctive workplaces home. Beacon is headquartered in Boston with offices in Chicago, Los Angeles, Denver, New York, San Francisco, Seattle, and Washington, D.C.
Beacon has raised nine investment vehicles as well as multiple joint ventures and co-investments totaling over $19 billion in equity since 1998 from a diverse investor group including endowments, foundations, public, private, and foreign pension funds, financial institutions, and sovereign wealth funds. This equity has fueled over 205 office and life science investments with a projected total value of $49 billion (including leverage and JV partner equity). Through its funds and joint ventures, Beacon currently owns approximately 28 million square feet of office properties either under management or development.