SAN FRANCISCO – CBRE Capital Markets’ Debt & Structured Finance has secured $17.25 million in acquisition financing for The Pointe, a two-building life science and office property located at 1201 and 1235 Radio Road in Redwood City, Calif. The property totals 89,145 square feet across the two Class A life science/office buildings.
The San Francisco-based CBRE team led by Mike Walker and Brad Zampa arranged the seven-year balance sheet bank financing on behalf of the sponsor, GI Partners. The financing CBRE secured consisted of a seven-year, full-term interest-only loan priced very competitively over 30-day LIBOR.
“We are thrilled with the outcome of the financing secured for the acquisition of The Pointe,” said Mike Walker of CBRE Capital Markets. “The finance markets are incredibly aggressive for stabilized life science right now as lenders are generally under allocated to this dynamic asset class. The fundamentals for this use in this location are some of the best in the United States. Those two dynamics coupled with the best-in-class sponsorship of GI Partners resulted in a very favorable outcome.”
The Bay Area life science market comprises 32 million square feet, with five million square feet under construction. The average asking lease rate range for life science product in the Bay Area ranges from $4.75 NNN to $5.75 NNN, depending on the location and quality of the asset. Current demand for life science product in the Peninsula is driven by the overall growth of the industry sector in a severely supply-constrained market.
The Pointe is at the heart of the emerging mid-Peninsula life science cluster. World-renowned life science companies including 23andMe, Amgen, Gilead Sciences, Illumina, Natera and Roche all are within proximity to the property.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2020 revenue). The company has more than 100,000 employees serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of 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.