SAN FRANCISCO, CALIFORNIA (June 30, 2022) – Andy Slaton, senior vice president/senior director of Northmarq’s San Francisco debt/equity office, arranged acquisition financing of $12.7 million for The Rotunda Garage. The parking garage building (built in 2006) contains 346 spaces and is located at 529 17th Street in Oakland’s central business district. The transaction was structured with a 5-year term with 3-years of interest only followed by a 30-year amortization schedule. Northmarq secured the bridge loan for the borrower through its relationship with a regional bank.
“There was general concern on product type and the slower than expected return to office led to pushback on underwriting to pre-covid operations and the deal was on the smaller side for debt funds and life companies, at a time when lenders were increasing the minimums due to overwhelming deal flow. We were able to overcome these challenges by highlighting the very capable sponsorship in Rubicon Point Partners and stressing how the parking garage fit into their business plan to reposition The Rotunda Building across the street,” said Slaton.
The sponsor was also acquiring the adjacent 265,000 sq. ft. historic Rotunda Building, served by the garage but the garage was to be financed on a standalone basis. The deal required a 5-year term, longer than typical for a bridge loan, along with flexible prepayment the last 2-3 years.
“The unique and specific request required us to go to 100+ lenders, including debt funds, banks, and life companies. A regional bank won the deal by offering the lowest rate for the desired 5-year term on a non-recourse basis. The sponsor acquired the garage in tandem with the Rotunda office building and the lender was able to accommodate the short timeframe,” concluded Slaton.