SAN FRANCISCO (June 10, 2019) – A NorthMarq team led by managing director Dennis Williams and vice president Briana Harney secured $93 million in construction-to-permanent financing for One De Haro. NorthMarq arranged the financing through a life insurance company relationship on behalf of the Sponsor, SKS Partners of San Francisco, California. The financing was structured with a $56 million senior loan and $37 million of mezzanine funds. Both loans feature a full term interest-only fixed rate and are co-terminus.
“This was a complex transaction that required a like-minded capital provider to enable SKS to execute on the business plan,” explained Williams. “We were pleased to bring one of our life companies to the table with a one-stop solution, effectively removing financing risk while SKS builds and stabilizes the project.”
“Dennis and Briana successfully sourced multiple financing alternatives and advised us every step of the way. We couldn’t be more pleased with the execution that paired us with a best-in-class lender that appreciates the design hallmarks of a SKS project and financing option that closely aligned with our business strategy,” said Victor Lau, SKS Director of Finance.
Designed by Pfau Long Architecture, One De Haro is located at the intersection of San Francisco’s SOMA, Potrero Hill, and Showplace Square districts. The project is a 4-story, 60-ft tall building which will have two-thirds office and one-third light industrial uses totaling 133,427 sq. ft. The upper floors will be built from Cross-Laminated Timber (“CLT”), allowing the exposed panels to provide a beautiful, warm, natural wood finish. The concrete ground floor will offer 20-foot tall ceilings and a welcoming mezzanine space. Once ﬁnished, this project will be the ﬁrst CLT building in San Francisco, and the first multi-story CLT building in California. Design plans include a rooftop deck amenity, lockers and showers, bike parking, and five loading docks. The surrounding area is well-amenitized for tenants, featuring numerous eateries, quick access to mass transit and freeways, and nearby residential developments.