JLL secures $52 million loan for community in city’s thriving South of Market area
SAN FRANCISCO, Dec. 19, 2013 — On behalf of an institutional investor, Jones Lang LaSalle’s Capital Markets experts today announced the firm has secured $52 million in senior financing for SoMa at 788, a 157,853-square-foot mixed-use property featuring 160 Class A apartments in the heart of San Francisco’s South of Market neighborhood. Prudential provided the senior level financing.
Executive Vice President Keith Largay, Managing Directors David Hendrickson and John Manning, and Senior Vice President Alex Witt led the JLL team on the transaction.
“There was a high level of interest in this property from lenders,” Manning said. “With its great location, the presence of Whole Foods as a ground-floor tenant and San Francisco’s thriving apartment market, this property has a tremendous amount going for it and is in a position to perform very well for years and years to come.”
“The San Francisco multifamily market, which has been so strong in recent years, is set to continue to excel, achieving strong rent growth and absorption, driven by impressive economic and job growth within the Bay Area,” added Largay.
The property was acquired in January 2013 and re-named SoMa at 788. It features studios, one- and two-bedroom apartments, with an average unit size of about 787 square feet. Whole Foods occupies 32,000 square feet on the ground floor of the property, providing a unique amenity for the community’s residences.
Amenities for residents include high-quality finishes, complete appliance packages in kitchens, double-pane windows, walk-in closets, controlled-access entry, state-of-the-art fitness center, dry sauna and multiple business centers. SoMa at 788 is located only half a mile from AT&T Park and numerous cultural attractions, and provides convenient access to transit as well as stunning views of the city skyline.
The San Francisco apartment market is one of the strongest in the country, with an overall occupancy rate of 97.1 percent in the third quarter. Over the past 10 years, San Francisco’s average occupancy rate has topped 95 percent, and the market has experienced an average annual rent increase of 3.1 percent in that time, figures topped only by New York. Forecasts indicate San Francisco will outperform its historical averages in the near future.
Jones Lang LaSalle Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether a sale, financing, repositioning, advisory or recapitalization execution. In 2012 alone, Jones Lang LaSalle Capital Markets completed $63 billion in investment sale and debt and equity transactions globally. The firm’s dealmakers completed $60 billion in global investment sales and buy-side transactions, equating to nearly $240 million of investment trades completed every working day around the globe. The firm’s Capital Markets team comprises more than 1,300 specialists, operating all over the globe.
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About Jones Lang LaSalle
Jones Lang LaSalle (NYSE:JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual revenue of $3.9 billion, Jones Lang LaSalle operates in 70 countries from more than 1,000 locations worldwide. On behalf of its clients, the firm provides management and real estate outsourcing services to a property portfolio of 2.6 billion square feet and completed $63 billion in sales, acquisitions and finance transactions in 2012. Its investment management business, LaSalle Investment Management, has $46.7 billion of real estate assets under management. For further information, visit www.jll.com.