New York City – Square Mile Capital Management LLC (“Square Mile Capital”) today announced that it originated a $131.2 million investment to facilitate the development of Artisan Crossing, a 250-unit multifamily project located in Belmont, CA. Square Mile Capital partnered with Bank OZK to place a $76.0 million first mortgage loan and retained a $55.2 million preferred equity investment.
The investment was made to a joint venture led by Windy Hill Property Ventures who will now begin construction. The investment was arranged by Terry Daly and Dan McLeod of Cushman & Wakefield’s San Francisco office.
Square Mile Capital Principal Eric Cohen said, “We are excited to continue our relationship with Windy Hill Property Ventures through the execution of this investment. They have an excellent track record of developing and leasing both multifamily and mixed-use projects throughout the Bay Area. We continue to have confidence in the future of transit-oriented projects in Silicon Valley and expect Belmont to be one of the next nodes to develop around CalTrain.”
“Square Mile Capital has been active in its deployment of preferred equity into transactions around the country and across property types,” said Square Mile Capital Managing Director Matthew Drummond. “This transaction is a good example of our ability to provide creatively structured preferred equity that can both enhance our partner’s expected development yield and fill an important gap in the capital structure. We have committed nearly $350 million of preferred equity so far in 2021 to best-in-class developments as well as acquisitions and recapitalizations, and expect to continue that activity level through the end of the year.”
The project is strategically located within a short walk to the Belmont CalTrain station and represents one of the first local projects to move forward following the passing of the Belmont Village Specific Plan. The project’s transit-oriented location provides commuters direct connectivity into downtown San Francisco, San Jose, and other Bay Area submarkets.
Upon completion, the property will feature a fitness center, outdoor courtyard, multiple outdoor amenity decks, dog spa, bicycle storage, a business center with multiple work pods, and two levels of underground parking.
About Square Mile Capital Management LLC
Square Mile Capital Management LLC is an integrated institutional real estate and investment management firm based in New York. The firm has an established history of successful investing in commercial real estate at all points in the market cycle. Square Mile Capital’s experience supplying flexible equity and debt capital solutions in diverse property sectors and across the risk spectrum, combined with its integrated national sourcing and investment platform, facilitates the creation of value for our investors, partners, borrowers and counterparties. Square Mile Capital seeks to identify the impact of long-term trends on real estate values and target its equity investments on key investment strategies likely to benefit from such trends. The firm’s commercial real estate debt platform provides customized capital solutions for real estate owners and developers throughout the United States utilizing our broad investment platform, product expertise and research resources.