REDWOOD CITY, CA—Broadway Station is a 114,859-square-foot, four-story class-A mixed-use building. PCCP LLC recently provided a construction loan to Lane Partners LLC for the development of the project at 2075 Broadway, with groundbreaking slated for the third quarter of 2017. The entire office portion of the downtown development has been pre-leased to the Chan Zuckerberg Initiative LLC.
Mark Zuckerberg co-founded the Chan Zuckerberg Initiative with his wife, Priscilla Chan, in December 2015. The initiative will bring scientists and engineers together in new ways, create computational and experimental tools to empower the scientific community and build a movement to support basic science research, GlobeSt.com learns. The team will work with partners around the world to create, improve and support enabling technologies.
Immediately spurring development when adopted in 2011, Redwood City's Downtown Precise plan has catalyzed growth—the 500,000 square feet of new office space allocated in the plan, which includes the development of Broadway Station, has already been met. In fact, much of the new and proposed office space has already been pre-leased. Box Inc. pre-leased the entire 334,000-square-foot Crossing/900 and Goodwin Procter LLP pre-leased the majority of the 133,000-square-foot 601 Marshall Street, which is currently under construction.
NKF Capital Markets' Northern California-based debt and structured finance group secured financing for the development of Broadway Station. Chris Moritz, an NKF Capital Markets managing director, handled the assignment with vice chairman Ramsey Daya.
“With continued regulatory challenges as a result of Basel III reforms and increasingly cautious underwriting, securing construction financing from banks remains a difficult prospect,” Daya tells GlobeSt.com. “Even with pre-leasing and strong overall market fundamentals, banks struggle to achieve meaningful leverage. Increasingly we are seeing private equity capital start to fill this void in the market, providing compelling terms for these sorts of opportunities.”
Broadway Station is central to one of the few densely developed urban cores on the entire Peninsula. More than 75 restaurants and bars and a theater featuring live shows and concerts are within walking distance. The Redwood City Caltrain station, featuring a Baby Bullet stop for quick travel times to San Francisco and San Jose, is just two blocks from the property, and Highway 101 and Interstate 280 are easily accessible.
“Lenders responded strongly to the financing opportunity, creating an extremely competitive selection process–a reflection of the continued growth in the downtown Redwood City market, strength of the tenancy and Lane's solid track record,” said Moritz. “PCCP demonstrated an exceptional understanding of the market and was selected from multiple qualified proposals for the loan.”
Led by Daya, the NKF group has placed approximately $500 million in debt since the beginning of this year. And since its inception, Lane has acquired and renovated more than 3 million square feet of office/R&D in the Silicon Valley and is also heavily invested in the East Bay where it recently sold its Uptown Station project to UBER Technologies.
GlobeSt.com learns another Chan Zuckerberg collaboration is the Biohub, an independent research center that brings together physicians, scientists and engineers from the University of California, Berkeley, the University of California, San Francisco and Stanford University. The Biohub invests in early-stage research with long-time horizons and supports the work of creative scientists by providing five years of unrestricted funding through its investigator program.
REDWOOD CITY, CA—Broadway Station is a 114,859-square-foot, four-story class-A mixed-use building. PCCP LLC recently provided a construction loan to Lane Partners LLC for the development of the project at 2075 Broadway, with groundbreaking slated for the third quarter of 2017. The entire office portion of the downtown development has been pre-leased to the Chan Zuckerberg Initiative LLC.
Mark Zuckerberg co-founded the Chan Zuckerberg Initiative with his wife, Priscilla Chan, in December 2015. The initiative will bring scientists and engineers together in new ways, create computational and experimental tools to empower the scientific community and build a movement to support basic science research, GlobeSt.com learns. The team will work with partners around the world to create, improve and support enabling technologies.
Immediately spurring development when adopted in 2011, Redwood City's Downtown Precise plan has catalyzed growth—the 500,000 square feet of new office space allocated in the plan, which includes the development of Broadway Station, has already been met. In fact, much of the new and proposed office space has already been pre-leased. Box Inc. pre-leased the entire 334,000-square-foot Crossing/900 and
NKF Capital Markets' Northern California-based debt and structured finance group secured financing for the development of Broadway Station. Chris Moritz, an NKF Capital Markets managing director, handled the assignment with vice chairman Ramsey Daya.
“With continued regulatory challenges as a result of Basel III reforms and increasingly cautious underwriting, securing construction financing from banks remains a difficult prospect,” Daya tells GlobeSt.com. “Even with pre-leasing and strong overall market fundamentals, banks struggle to achieve meaningful leverage. Increasingly we are seeing private equity capital start to fill this void in the market, providing compelling terms for these sorts of opportunities.”
Broadway Station is central to one of the few densely developed urban cores on the entire Peninsula. More than 75 restaurants and bars and a theater featuring live shows and concerts are within walking distance. The Redwood City Caltrain station, featuring a Baby Bullet stop for quick travel times to San Francisco and San Jose, is just two blocks from the property, and Highway 101 and Interstate 280 are easily accessible.
“Lenders responded strongly to the financing opportunity, creating an extremely competitive selection process–a reflection of the continued growth in the downtown Redwood City market, strength of the tenancy and Lane's solid track record,” said Moritz. “PCCP demonstrated an exceptional understanding of the market and was selected from multiple qualified proposals for the loan.”
Led by Daya, the NKF group has placed approximately $500 million in debt since the beginning of this year. And since its inception, Lane has acquired and renovated more than 3 million square feet of office/R&D in the Silicon Valley and is also heavily invested in the East Bay where it recently sold its Uptown Station project to UBER Technologies.
GlobeSt.com learns another Chan Zuckerberg collaboration is the Biohub, an independent research center that brings together physicians, scientists and engineers from the University of California, Berkeley, the University of California, San Francisco and Stanford University. The Biohub invests in early-stage research with long-time horizons and supports the work of creative scientists by providing five years of unrestricted funding through its investigator program.
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