CBRE Capital Markets’ Debt & Structured Finance team secured a $100 million construction loan for The Grove, in Los Gatos, California.
The development will consist of 485,000 s/f of Class A office space in three-and four-story office buildings in a campus environment on a 21-acre site.
The first phase — which is already under construction to be delivered in May 2015 — will consist of 242,000 s/f in two office buildings pre-leased to Netflix, Inc. John Nelson of CBRE’s San Francisco office arranged the financing on behalf of the borrower/developer, a joint venture between Sand Hill Property Company and The Carlyle Group.
The interest rate was a variable, LIBOR-based rate. The financing was provided by a syndicate of lenders led by SunTrust Robinson Humphrey with SunTrust Bank as Administrative Agent.