Northmarq’s San Francisco office arranges acquisition financing of $7.5 million for multifamily property in Santa Clara, California

SAN FRANCISCO, CALIFORNIA (September 9, 2021) – A team led by Senior Vice President Andrew Slaton of Northmarq's San Francisco office arranged a $7,500,000 bridge loan to fund the acquisition, renovation, and re-tenanting of 1995 El Camino Real, a multi-tenant office property ideally located in downtown Santa Clara. Northmarq has been exclusively retained by an experienced office property sponsor, Panomark Properties, to acquire the three-story, 32,018 sq. ft. multitenant office building located in Santa Clara, California. The sponsor is in escrow to purchase the property for $12 million and requests a 58 percent LTV bridge loan at $7 million to fund the acquisition, renovation, and re-tenanting costs. The subject is currently owned and occupied by Wells Fargo Bank.

Upon acquisition by the sponsor, Wells Fargo plans to vacate the second and third floors while executing a new 10-year lease to continue to use the ground floor as their bank branch. The new lease will commence at the close of escrow and features three percent annual increases along with four five-year extension options. The starting lease rate is $40/year for the 8,052 sq. ft. space totaling an annual rent of $322,080. Clear Wireless occupies the roof at $55,860/year and has 2.5 percent annual increases. Their lease ends in September 2024 but they have one more 5-year extension option. The sponsor plans to renovate and re-lease the vacant upper floors to hit stabilization within 18 months.