Square Mile Capital Management LLC (“Square Mile Capital”) today announced that it originated a $106 million loan secured by 406 E 3rd Ave, a mixed- use project in San Mateo, CA. When completed, the ground-up development will consist of 115,000 square feet of office space and 25 multifamily units.
The loan was made to a joint venture led by Windy Hill Property Ventures who commenced development of the property in December 2019. The financing was arranged by Terry Daly and Dan McLeod of Cushman & Wakefield’s San Francisco office. Square Mile Capital collaborated on the financing with Bank OZK, who provided the senior portion of the loan. Project completion is expected in 2022.
Square Mile Capital Principal Eric Cohen said, “Given the current market dynamics, we continue to seek out investments in high quality, transit-oriented office properties across the Bay Area and look forward to beginning a new relationship with Windy Hill Property Ventures on this development. They have an excellent track record of developing and leasing other comparable projects, most notably the adjacent property at 4th and Claremont which was 100 percent pre-leased prior to its delivery. We are confident that Windy Hill’s best-in-class team will once again be successful in delivering this project to the market.”
The project is positioned just two blocks from the San Mateo Caltrain Station and is accessible via Highway 101. The project’s transit-oriented location provides commuters direct connectivity into downtown San Francisco, San Jose, and other Bay Area submarkets. In addition, the project is surrounded by numerous dining, retail, and entertainment options including a local supermarket, an Equinox gym and Century Theatres.
Upon completion, the property will feature a communal roof deck and outdoor terraces for office tenants. All multifamily units will feature stainless steel appliances, quartz countertops, in-unit washer/dryer, and plank flooring.
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’s commercial real estate debt platform provides customized capital solutions for real estate owners and developers throughout the United States. Square Mile Capital’s equity platform serves as a partner of choice for opportunistic and value add real estate investments across all property types. By identifying the impact of long-term trends on real estate values, the firm focuses on key investment themes and investment structuring in order to maximize risk-adjusted investment returns.