New York City, June 22, 2017 – Square Mile Capital Management LLC (“Square Mile”) today announced that it has originated a loan secured by 180 Grand, a 15-story, 279,000 square foot office building located in the Lake Merritt submarket of Downtown Oakland, California.
KKR and Harvest Properties are acquiring the 95 percent leased property, and will seek to capitalize on recent capital improvements and strong leasing momentum in Downtown Oakland.
The financing was used to fund the acquisition, capital improvements, and future leasing costs. It was arranged by Brad Zampa, Michael Walker, and Megan Woodring of CBRE’s San Francisco Debt & Structured Finance team.
The property is well-located within Downtown Oakland at the corner of Grand Avenue and Harrison Street, directly across from Lake Merritt and Lakeside Park, allowing for unobstructed views of the lake as well as of Berkeley and the Oakland Hills. The property is located within one block of a Whole Foods Market and is near numerous restaurants, cafes, retail stores and entertainment venues, as well as the 19th Street BART station within Downtown Oakland.
Square Mile Principal Michael Mestel said, “This transaction gives us the opportunity to provide financing at a secure basis on a well-leased asset and establish a lending relationship with a premier team in KKR and Harvest Properties, which combine extensive Bay Area experience with one of the world’s largest private equity firms. Between the owners’ track record, the building’s desirable location and the strong office market fundamentals in Oakland, we believe 180 Grand Avenue is very well positioned to take advantage of the narrowing gap between rents in San Francisco and Downtown Oakland.”
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.