Location and Long-Term Tenancy Strength Moves DivcoWest Property Refi

SAN FRANCISCO—Newmark Knight Frank has arranged $36 million in refinancing on behalf of DivcoWest for 180 Townsend, a four-story, 40,917-square-foot office building in San Francisco. The loan was placed with JP Morgan Asset Management and successfully closed amidst the recent capital markets turmoil resulting from the COVID-19 outbreak, while maintaining the same terms as originally set forth.

The asset is currently undergoing renovations to accentuate existing features such as the brick facades, windows and ceiling clear heights as ownership makes upgrades to match the property’s superior location and create a class A creative office environment.

Vice Chairman Ramsey Daya and Senior Managing Director Chris Moritz of the NKF’s Debt & Structured Finance team in the San Francisco office executed the financing on behalf of the owner, DivcoWest, a privately owned, vertically-integrated operating company. Daya and his team remain active, having recently completed another refinancing of nearly $40 million last week, according to a prepared statement.

Located at San Francisco’s South of Market neighborhood, the property is in proximity to an abundance of amenities including restaurants, housing and major sports venues such as AT&T Park and the new Chase Center, and presents direct access to municipal public transportation, commuter trains to Silicon Valley and several freeway options. The building is 100% leased to venture capital firm Andreessen Horowitz.

“Given the property’s superior infill San Francisco location coupled with the strength of the long-term tenancy, lenders expressed significant interest in the opportunity,” says Daya. “JP Morgan Asset Management distinguished themselves from a competitive landscape and executed flawlessly through a tumultuous environment.”