SUNNYVALE, CA-US Bank and Jay Paul Co. have officially closed on a $284.7-million construction/bridge loan that will finance Moffett Towers Phase II, a 1.033-million-square-foot, class A mid-rise office project in Sunnyvale, CA. The Moffett Towers Phase II construction/bridge loan is the largest financing of its kind so far this year outside of New York, according to a prepared statement.
Construction on Moffett Towers Phase II is already underway and is scheduled to be completed in 2013. US Bank is the lead bank on the deal.
“Moffett Towers is an A quality project in a location with a strong economy, backed by superior sponsorship from its developer, Jay Paul Co.,” says John West, senior vice president of commercial real estate at US Bank, in a prepared statement. “The joining of Jay Paul Co. with U.S. Bank Commercial Real Estate Group—San Francisco was a natural fit to successfully complete this financing.”
Participant banks in the deal included Bank of America, JP Morgan Chase and Wells Fargo.
As GlobeSt.com already recently reported, Chicago-based Pearlmark Real Estate Partners LLC, also recently closed a $40-million mezzanine loan on Moffett Towers II, consisting of three existing class-A office buildings totaling 683,000 square feet.
At the time, GlobeSt.com reported that plans for the project include the development of a fourth building for 357,000 square feet and expansion of an existing parking garage.
The property is the second phase of an overall 2.1-million-square-foot office/R&D campus that includes a 48,000-square-foot shared amenity building. The overall development spans 52 acres located in the Sunnyvale submarket of the Silicon Valley, adjacent to the Moffett Airfield.
Hewlett-Packard recently executed an 11-year lease on approximately 60% of the existing net rentable area, with occupancy scheduled to commence in April 2012. The investment was made on behalf of Pearlmark Mezzanine Realty Partners III LLC, a fully-discretionary investment fund with $427 million in capital commitments.
In that same article, we mentioned that the borrower, Jay Paul Co., who is the developer and manager of Moffett Towers also received a total senior loan commitment of $284.2 million in the refinancing for the project. Bill Swackhamer, managing director of Pearlmark Real Estate Partners, arranged the transaction.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
