The financing was arranged by John Churchward in Holliday Fenoglio Fowler LP's San Francisco office. HFF worked on behalf of Vanbarton Group to place the floating-rate loan with Mesa West Capital.

“It is going to be very exciting to see this stretch of Stockton Street transform over the next few years, as it may become more of a pedestrian-only street connecting the people and amenities on Market Street to Union Square,” Churchward says. “Mesa West provided a creative and flexible financing solution that allows Vanbarton Group to execute a very thoughtful business plan to increase the value of this asset.”

Mesa West is a non-recourse balance sheet lender. It has a $4 billion lending capacity from institutional investors.

“In the last year, we have financed more than $275 million of high street retail nationwide and continue to be big believers in the product type,” Gul tells GlobeSt.com.

As previously reported, nearly all of San Francisco's flagship stores are concentrated within just a few minutes' walk of each other in Union Square or its immediate vicinity.

SAN FRANCISCO—A new Central Subway station, which will connect BART and Caltrain, along with the Bayshore Mission Bay areas to Chinatown, is currently under construction with a new MUNI stop at Stockton and Market Streets. The $1.6 billion project is expected to transform Stockton Street and increase its pedestrian traffic when completed in 2019.

Within a block away is 39 Stockton St., a two-story building originally built in 1909 and now fully leased to the Disney Store. The property is located one and a half blocks south of Union Square and a half block north of Market Street. The property is neighbored by some of the largest national and international brands such as Apple, Barney's New York, Macy's, Crate & Barrel and Ghirardelli, with 146 retail stores in a four-block radius.

Mesa West Capital recently provided the Vanbarton Group, together with one of its US pension fund partners, with $16 million in first mortgage debt to finance the fully occupied 12,281-square-foot Stockton Street retail property. Mesa West's five-year floating-rate loan was originated out of the firm's Mesa West Real Estate Income Fund IV LLC.

“The Union Square submarket is already one of the most desirable retail districts in the United States, and occupancy and rental rates are at historic levels,” said Mesa West principal Ronnie Gul who led the West Coast origination team. “The new subway will bring thousands of locals and tourists each day right to the front step of the asset, which will substantially increase the desirability of the property.”

The financing was arranged by John Churchward in Holliday Fenoglio Fowler LP's San Francisco office. HFF worked on behalf of Vanbarton Group to place the floating-rate loan with Mesa West Capital.

“It is going to be very exciting to see this stretch of Stockton Street transform over the next few years, as it may become more of a pedestrian-only street connecting the people and amenities on Market Street to Union Square,” Churchward says. “Mesa West provided a creative and flexible financing solution that allows Vanbarton Group to execute a very thoughtful business plan to increase the value of this asset.”

Mesa West is a non-recourse balance sheet lender. It has a $4 billion lending capacity from institutional investors.

“In the last year, we have financed more than $275 million of high street retail nationwide and continue to be big believers in the product type,” Gul tells GlobeSt.com.

As previously reported, nearly all of San Francisco's flagship stores are concentrated within just a few minutes' walk of each other in Union Square or its immediate vicinity.