Northmarq’s Debt + Equity team arranges $50M refinance of Merchants Exchange office building in San Francisco

SAN FRANCISCO, Calif. — Northmarq’s Los Angeles Debt + Equity team led by Karl Weidell successfully arranged the $50 million refinance of Merchants Exchange, an historic 245,000 square-foot office building located at 465 California Street in San Francisco, California.

“Mid-process, the San Francisco office market began to show tangible signs of recovery fueled by the emergence of AI in the technology sector,” Weidell said. “Both the market and the asset experienced a leasing rebound off of cyclical lows and a strong increase in occupancy. The new loan accounted for all necessary costs over the loan term and provides meaningful runway to benefit from the broader office recovery. Not every office benefits the same, but trophy assets found a reset floor and are already making recoveries in leasing and value which has led to a significant increase in credit appetite.”

Built in 1903 and sitting on 0.53 acres in San Francisco’s Financial District, the iconic Merchants Exchange stands 17 stories tall and features distinctive architecture, a history of notable inhabitants, and an ideal location that has resulted in making it a prominent Bay-area landmark.

The property features event space along with office suites. It maintains its 1903 architecture along with state-of-the-art modern amenities, serving as a hub for civic and financial activity for more than a century. It boasts a central location in downtown San Francisco, standing within walking distance of the Bay Area Rapid Transit (BART) and Muni as well as the historic California St. Cable Car line. It sits roughly one mile from both the San Francisco Bay and access to the San Francisco-Oakland Bay Bridge.