San Francisco, CALIFORNIA – Nathan Prouty, senior vice president/managing director, and Anika Comaroto, investment analyst in NorthMarq Capital’s San Francisco office arranged the $46,000,000 bridge financing for Hellyer Oaks, a two-building R&D property in South San Jose, California (Editor’s Note: 5225 Hellyer Avenue, San Jose). The floating-rate transaction was structured with a 2-year interest-only term. NorthMarq arranged financing for the borrower, Vertical Ventures, an established real estate firm in the Bay Area.
The property is a high-quality asset totaling 347,434 sq. ft. institutionally maintained, the campus has been significantly upgraded in the past three years, including new outdoor amenities. Hellyer Oaks is in close proximity to U.S. 101. The South San Jose R&D market has experienced significant growth in the previous years and offers one of the most compelling stories within the current Silicon Valley landscape.
“Following the impressive leasing velocity since Vertical Ventures’ acquisition, this new financing facility both reduced borrowing costs and provided additional capital needed to fully stabilize the project,” said Prouty. “The borrower will continue to improve spaces for tenants drawn to the desirable campus-like setting in South San Jose, an attractive alternative to the more costly and undersupplied downtown market.”