New York City, March 20, 2017 – Square Mile Capital Management LLC (“Square Mile”) today announced that it has originated a $145.0 million construction loan to finance a development project in Menlo Park, California. The loan will be secured by an eight-story, 210,000-square-foot office building, a 1,040-space parking structure and a 41,000-square foot fitness center. It is being developed by The Bohannon Companies, a real estate development and management firm with a long history of ownership in San Mateo County.
The financing was arranged by John Kerslake and Briana Smith of NorthMarq Capital.
The project is part of the first phase of Menlo Gateway, a 16-acre master-planned development comprised of a 250-room Autograph Collection hotel currently under construction and a total of approximately 500,000 square feet of office space to be built in phases.
The project’s site is located at 100 Independence Drive, off the Marsh Road exit of US Route 101. Designed by Heller Manus, the office building capitalizes on the site’s excellent visibility from the highway, and is oriented to maximize southern exposure and natural light. The property is expected to achieve a high level of efficiency eligible for LEED Gold certification, and will include cutting-edge “green” features, including enhanced energy, water, air quality and lighting efficiencies.
Known as a hub for high technology, Menlo Park attracts many of the nation’s most prominent technology and venture capital firms, including Intuit, SRI International, TE Corporation, Andreessen Horowitz and Sequoia Capital. The city’s largest employer and landlord, Facebook, Inc., is headquartered just two miles east of the site and has aggressively expanded in the immediate area surrounding the project site.
Square Mile Principal Michael Mestel commented, “The supply-constrained Menlo Park office market, combined with demographic and economic tailwinds, provide exceptional fundamentals for a project of this scale and quality. In addition, The Bohannon Companies have been at the forefront of real estate development in Silicon Valley for over 80 years. We are excited to provide financing for the creation of an iconic office building in an irreplaceable location, backing an established developer with a history of success.”
About Square Mile Capital Management LLC
Square Mile Capital Management LLC is an integrated institutional real estate finance and investment management firm based in New York. The firm’s commercial real estate debt platform provides customized capital solutions for real estate assets throughout the United States. Square Mile’s opportunistic platform takes a value-oriented approach to its investment activities, with an emphasis on opportunities to invest in real estate assets or enterprises that are undervalued, complex or under-capitalized.
About NorthMarq Capital
For more than 50 years, NorthMarq Capital has provided debt and equity to commercial real estate owners and investors through 36 regional offices coast-to-coast. With an annual production volume of more than $13 billion and a loan servicing portfolio of $50 billion on behalf of more than 50 institutional investors, Northmarq Capital is one of the largest commercial real estate mortgage banking firms in the world, and the nation’s largest privately held servicer and provider of commercial real estate debt and equity.