SAN FRANCISCO-GlobeSt.com has exclusively learned that $7.88 million in financing has been arranged for the 67,000-plus-square-foot mixed-use building located in the Jack London Square neighborhood in Oakland. The CBRE debt and equity finance team of Jim Korinek, EVP; John Nelson, EVP; and Michael Walker, senior associate of CBRE's San Francisco office, worked to originate the loan on behalf of Metrovation, a privately owned real estate company.
Korinek tells GlobeSt.com that the proceeds were used both to refinance a maturing bank loan and to provide the funds for a portion of the costs associated with converting two spaces from low value storage space to high finish office space for creative tenants. “This included seismic upgrades and extensive tenant improvements to create high ceiling, loft-like tenant spaces with open floor plans and balconies so as to meet the needs of marketing and technology firms moving to this neighborhood,” he says.
The 3rd & Jefferson property was acquired by Metrovation in 1999 and has since been converted and upgraded from its former retail use. With high ceilings and exposed brick, there are also unique tenants like artists' studios and a winery, according to CBRE.
Korinek explains that “Although this is a unique property from both a physical and tenancy perspective we were successful generating strong lender interest. Numerous capital sources provided attractive quotes because of the excellent leasing performance, strong market, and the highly experienced sponsorship of Metrovation which has a long history in this sub-market.”
The property is located in the Jack London Square area along Oakland's waterfront, a continually improving mixed-use neighborhood that has convenient access to I-880, the Ferry to San Francisco, BART and Amtrak. Jack London Square continues to grow as an attractive mixed-use neighborhood, according to CBRE. “It is particularly appealing to creative firms and non-profits, many of whom are seeking a convenient and cost-effective alternative to San Francisco,” says Korinek.
The financing is non-recourse with a fixed rate for 10 years. The property is now 97% leased.
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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.
