MetLife Provides $190MM Refinance Loan to Vanbarton for 100 Montgomery in San Francisco

By Jon Peterson

MetLife Investment Management has provided a $190 million mortgage for the 429,000 square foot 100 Montgomery Street office building in San Francisco, according to information provided by the lender.

Vanbarton declined to comment when contacted for this story.

The mortgage on the property will be used to re-finance the asset, which the New York-based investor purchased in July of 2016 for $275 million, according to previous reporting by The Registry. The loan has a seven-year term with a fixed rate, however, MetLife did not provide the interest rate on the transaction. There was also no broker involved in the deal, although the person who originated the loan for MetLife was Michael Coen who works out of the company’s regional office in San Francisco at 425 Market Street.

When Vanbarton purchased the asset, it was from Equity Office, which in turn had paid $165 million for the property in October 2012.

According to industry sources with knowledge of Vanbarton’s property, the company has now completed its business plan for the building. This included investing an $10 million into the property for improvements since its acquisition; work that included upgrades on the lobby and the elevator. At the same time, the property owner has also been able to bring the rents in the building up to market levels either with new tenants or signing new leases with existing tenants.

Vanbarton had purchased 100 Montgomery for one of its institutional clients. The real estate manager considers the property to be a core long-term hold unlikely to be sold over the next six to seven years, as stated by sources familiar with the asset. However, this has not prevented interested parties in making unsolicited offers on the property; according to sources with knowledge of the San Francisco investment market, the owner has received offers from other capital sources seeking to buy for the property north of $400 million.

West Coast Commercial Real Estate News