SAN FRANCISCO (May 8, 2018) – John Kerslake, senior vice president/managing director and Briana Harney, senior investment analyst of NorthMarq Capital’s San Francisco regional office, arranged the $157.3 million construction-to-permanent loan for Menlo Gateway Phase II, an under-construction office property located at 125 and 135 Constitution Drive in Menlo Park, California. The fixed-rate transaction was structured with a 3-year interest only term during construction followed by a 14-year permanent term. NorthMarq arranged financing for the borrower entities, Bohannon Development Company and Alexandria Real Estate Equities (ARE), through a life insurance company relationship.
The Menlo Gateway project is a 16-acre master-planned development comprised of a 250-room Autograph Collection hotel and a total of approximately 773,000 sq. ft. of office space fully leased to Facebook.
The first phase of the development, which has been completed, is located at 100 Independence Drive in Menlo Park and comprises 252,000 sq. ft. of space. Phase II, which is slated for the fourth quarter of 2019 delivery, is planned to deliver 521,000 sq. ft. at 125 and 135 Constitution Drive.
“The construction-to-permanent loan provides attractive fixed-rate financing on the property, effectively mitigating interest rate risk for the long-term,” said Kerslake. “The life insurance company provided a tailored solution that met the needs of the borrower and the closing process was executed smoothly.”
About Bohannon Development Company
The Bohannon Companies develop, maintain, and manage properties throughout the Bay Area, including numerous projects that are noted for their innovative land use. Bohannon properties are characterized by quality and vision, and each project plays an important role in its surrounding community. The Bohannon family has represented real estate and land use innovation on the Peninsula since the 1930s.
About Alexandria Real Estate Equities
Alexandria Real Estate Equities, Inc. (NYSE: ARE), an S&P 500® company, is an urban office REIT uniquely focused on collaborative life science and technology campuses in AAA innovation cluster locations, with a total market capitalization of $17.9 billion and an asset base in North America of 29.6 million SF as of December 31, 2017. Founded in 1994, Alexandria pioneered this niche and has since established a significant market presence in key locations, including Greater Boston, San Francisco, New York City, San Diego, Seattle, Maryland and Research Triangle Park.
About NorthMarq Capital
NorthMarq Capital, the largest privately held commercial real estate financial intermediary in the country, provides debt, equity and commercial loan servicing through offices across the U.S. As a leader in capital solutions through long-term relationships with life companies, CMBS platforms and local, regional and national banks, the company also has a long track record of multifamily loan origination through Freddie Mac, Fannie Mae and FHA/HUD. The company services a loan portfolio of more than $52 billion and has over 300 loan origination experts in regional offices coast-to-coast. For more information please visit www.northmarq.com.