On Nov. 12, Manatt closed, for client Jay Paul, an aggregate $906.5 million financing transaction representing the second phase of the firm’s continuing involvement in the development of Jay Paul’s Moffett Place campus, a 1.9 million square foot office campus which, when completed, will consist of six office buildings, a health club and related common area improvements on 55 acres located in Sunnyvale, Calif. The entire campus is leased to Google.
The phased nature of the development presented particular challenges in the context of the financing. Manatt partner Clay Gantz led a deal team that included associate Grace Yang and counsel Scott Johnson, with the assistance of partners Carl Grumer, Hal Reichwald, David Herbst and Jeff Mannisto.
The financings consist of (i) a $501,000,000 loan by Barclays and $149,000,000 mezzanine loan by a Korean sovereign wealth fund, each to provide long term financing on three completed buildings, and (ii) a $256,000,000 construction loan by Wells Fargo Bank to provide construction financing for a fourth building and land financing for the remaining undeveloped portion of the project. The final two buildings will be financed and constructed later this year.
The Barclays loan will comprise a single asset CMBS securitization, and as such was closely scrutinized by the rating agencies and origination and securitization counsel.