SAN FRANCISCO—An investor partnership made up of The Jackson Group, Sun Equity Partners and Concord Real Estate has borrowed $35 million toward the purchase of 166 Geary Street, a mixed use building in Union Square.

Meridian Capital Group arranged the acquisition financing, a $35 million, 36-month, floating-rate mortgage, provided by a national balance sheet lender, features full-term interest-only payments and is priced at 350 basis points over one-month LIBOR. This transaction was negotiated by managing director, Shaya Ackerman, and managing director, Moshe Majeski, who are both based in the company's New York City headquarters.
The financing was structured to accommodate the sponsors' unique business plan to separate the asset into two commercial condos post-closing by pre-allocating $25 million to one portion of the asset and $10 million the remainder.
The property, located in San Francisco's trendy Union Square area, contains 46,000 square feet of commercial space and a unique tenant mix. Union Square is one of the foremost shopping districts in California and boasts a very high concentration of luxury retailers.

“In order to tailor this transaction to meet the sponsors' needs, Meridian worked collaboratively with the lender to account for all of the contingencies related to the sponsors' condominium plan for the asset,” said Ackerman. “In addition to the unique post-closing bifurcation feature of this loan, Meridian negotiated a competitive floating interest rate which includes flexible prepayment terns,” he added.