Office - Debt


NorthMarq Capital San Francisco secures $157.3 million financing of Menlo Gateway Phase II in Menlo Park, California

SAN FRANCISCO (May 10, 2018) – John Kerslake, senior vice president/managing director and Briana Harney, senior investment analyst of NorthMarq Capital’s San Francisco regional office, arranged the $157.3 million construction-to-permanent loan for Menlo Gateway Phase II, an under construction office property located at 125 and 135 Constitution Drive in Menlo Park, California. The fixed-rate transaction was structured with a 3-year interest only term during construction followed by a 14-year permanent term. NorthMarq arranged financing for the borrower entities, Bohannon Development Company and Alexandria Real Estate Equities (ARE), through a life insurance company relationship. The Menlo Gateway project is a 16-acre master-planned development comprised of a 250-room Autograph Collection hotel and a total of approximately 773,000 sq. ft. of office space fully leased to Facebook. The first phase of the development, which has been completed, is located at 100 Independence Drive in Menlo Park and comprises 252,000 sq. ft. of space. Phase II, which is slated for the fourth quarter of 2019 delivery, is planned to deliver 521,000 sq. ft. at 125 and 135 Constitution Drive. “The construction-to-permanent loan provides attractive fixed-rate financing on the property, effectively mitigating interest rate risk for the long-term,” said Kerslake. “The life insurance company provided a tailored solution that met the needs of the borrower and the closing process was executed smoothly.”

As a capital markets leader, NorthMarq offers commercial real estate investors access to experts in debt, equity, investment sales, and loan servicing to protect and add value to their assets. For capital sources, we offer partnership and financial acumen that support long- and short-term investment goals. Our culture of integrity and innovation is evident in our 60-year history, annual transaction volume of more than $14 billion, loan servicing portfolio of more than $61 billion and the multi-year tenure of our nearly 600 people.