MENLO PARK, CA—A 175,840-square-foot office building located at 3000 Sand Hill Rd. received financing of $37 million. The transaction was structured with a 12-year term and 20-year amortization schedule.
Jeffrey Weidell, president, and Andrew Slaton, vice president of NorthMarq Capital arranged the refinancing of this property on behalf of an affiliate of The Ford Land Company through NorthMarq Capital's correspondent relationship with Nationwide Life Insurance Company.
Weidell tells Globest.com: "Silicon Valley leads the world in venture capital financing and Sand Hill Road is its home. In spite of chart-topping rents and values, there was great lender interest in this loan."
Built by the sponsor in phases between 1971 and 1986, the multi-building office campus is located on Sand Hill Road near the Interstate 280, an area noted for its concentration of venture capital companies. The property is leased to more than 40 small and mid-sized firms.
Weidell noted, "As part of the elite Sand Hill submarket, 3000 Sand Hill has historically performed extremely well. Occupancy over the last decade has been in the range of 90% or higher and it commands rents in excess of the top of the range of asking rates for comparable properties. The campus feel, on-site restaurant and fitness amenities, and the borrower's high level pride-of-ownership management style contribute to its success. There were a number of deal points that helped us negotiate attractive terms, including a best-in-class borrower, conservative leverage, and a high-quality asset in a robust and desirable submarket."
As previously reported, South Bay multi-family properties have also been refinanced recently.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
