Largest Recorded Portfolio Financing Allows Rate Lock-In

One of the properties in this transaction, 950 Franklin, has above ground-floor retail.

SAN FRANCISCO—An $815 million financing of a multifamily, retail and mixed-use property portfolio is the largest of its kind in San Francisco history. The recent transaction enables San Francisco-based Veritas Investments Inc. and its partners to lock in attractive financing rates. Veritas Investments’ strategy is to acquire properties in the Bay Area, leveraging its platform to deliver consistent returns in a market with high barriers to entry. Veritas invests in urban, mixed-use residential-over-retail properties and a smaller amount of apartment buildings without retail. For example, two properties in this transaction that have apartment above ground-floor retail are 950 Franklin and 210 Church. Veritas CEO Yat-Pang Au tells GlobeSt.com: “The properties involved in this financing were acquired in 2011 and 2012 through the purchase of fee title and the acquisition and foreclosure of debt from multiple sources, including institutional sellers. The strategy is in keeping with Veritas’ aggregation of properties into institutional-sized opportunities.” Veritas’ co-investors in the portfolio are undisclosed but they include private institutional equity and domestic and offshore sources. Goldman Sachs provided the financing and Eastdil Secured acted as the exclusive adviser in the transaction. “This loan demonstrates the ability of the Veritas platform to successfully create value for our residents, tenants and investors. I am proud of our team’s dedication, creativity and collaborative approach towards improving existing urban infill properties in order to create communities that delight our residents,” said Au. The partnership owns a total of 45 buildings with an average of 30 residential housing units per building. All properties are located in San Francisco’s most unique and desirable neighborhoods, such as Lower and Upper Nob Hill, Russian Hill, North of the Panhandle, Noe Valley, Duboce Triangle, Alamo Square, Mission Dolores and North Panhandle. Read more about Veritas Investments in a past issue.