SAN FRANCISCO – CBRE Capital Markets’ Debt & Structured Finance has secured construction financing for The Maclac Building, a five-story, +108,161 net-rentable-square-feet PDR-zoned redevelopment project located in San Francisco.
The San Francisco-based CBRE team, led by Mike Walker and Brad Zampa, arranged the five-year floating-rate financing on behalf of the borrower, a joint venture between affiliates of Comstock Realty Partners & Dune Real Estate Partners. The financing secured consisted of a five-year, full-term interest-only loan priced competitively over 30-day Libor.
“We are thrilled with the outcome of the financing secured for the redevelopment of the historic Maclac building,” said Mike Walker of CBRE. “The outcome here is a testament to the Comstock – Dune sponsorship and their track record building and redeveloping best-in-class real estate throughout California as well as the attributes of the accommodating PDR-zoning, the scale of the site and its strategic location with multiple access points to logistics and transit. Long term, I think PDR in this location will perform extremely well. I am incredibly excited to see the finished project.”
The property spans five interconnected buildings over two parcels and half of a city block, located at 192-198 Utah Street & 151-191 Potrero Avenue, in the chic SOMA Potrero District of San Francisco. Commenced in May 2020 and being delivered in phases, with work currently expected to be complete in Q3 2022, the sponsor’s plan is to reconfigure, upgrade, and expand the current structures with 4,000 amps of power, updated building systems, green roof terraces, and a multi-story glass atrium lobby tying the building floorplates together. The plan calls for a new four-story structure at Potrero and 15th and preserves the A-frame jewel-box of brick, timber and steel at the corner of Utah and 15th. The property features spectacular views of downtown San Francisco and maintains many historical features. Ultimately, the sponsor plans to deliver a state-of-the-art Class A PDR building in one of the most sought-after neighborhoods in San Francisco.
Some of the strongest attributes of the property are its location and visibility. Because the prominent 80-foot-tall structure is situated at the connection of the Bay Bridge and 101 Freeway connector, the building is expected to provide excellent signage and visibility to travelers going to and from the East Bay, the Peninsula, and Marin County. The property is situated within the heart of the “social-media triangle” and located at the intersection of Showplace Square, SoMa, Mission District and Potrero Hill, which serves as the epicenter of innovation in the fields of technology, PDR, and life sciences. These submarkets are among the top destination for technology tenants in the city.
About Comstock Realty Partners
Comstock Realty Partners is a diversified commercial real estate investment and development firm with a geographic focus on the Western United States, with its goal to be a 21st century placemaker for people, government and business, using only the best in design, engineering, social consideration and environmental technology principles to guide its projects to maximum success and value creation.
About Dune Real Estate Partners
Dune Real Estate Partners is a New York City-based real estate investment firm executing an investment strategy that focuses on distressed, deep value-add and contrarian investing balanced by region, sector, and risk profile. Dune manages the Dune Real Estate Funds, which were launched by Mr. Daniel M. Neidich in 2005 and have raised approximately $4 billion of equity capital to date. Dune invests on behalf of pension funds, sovereign wealth funds, endowments and other large institutions and individuals.
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.