Mission Capital Advisors, a national real estate services firm, announced that its Debt & Equity Finance team arranged $45 million in non-recourse acquisition financing for 995 Market Street, a 15-story office tower located in San Francisco, California.
The Mission Capital team of Jordan Ray, Ari Hirt, Steven Buchwald and Alex Draganiuk arranged the loan on behalf of Bridgeton Holdings, an owner, developer, and manager of commercial and residential real estate.
This is the second WeWork property that Mission Capital has financed. The firm also arranged a $70 million bridge/renovation financing for 88 University in New York City in the fourth quarter 2015. “995 Market is an enviable asset in one of the country’s strongest office markets,” said Draganiuk.
“The retail component is fully occupied by CVS on a long-term lease, and the majority of the building’s office space is leased to WeWork.”
“The building will be a long term asset for us, as we continue to amass strategic properties in transitioning markets that have improving neighborhood dynamics and strong supply and demand fundamentals,” said Atit Jariwala of Bridgeton Holdings.
The property, which traded for $62 million, is comprised of 91,300 s/f of rentable space. The ground floor retail is fully leased to CVS and the office is leased to WeWork and a non-profit tenant.
“Our execution of this transaction is a testament to Mission Capital’s ability to meet our client’s specific needs in securing capital. In this instance, the sponsor was looking for a 10-year loan that would not lock them into 10 years of defeasance or yield maintenance as prepayment penalty. We were also tasked with closing the deal within 50 days to facilitate the 1031 exchange,” said Hirt.
We were able to secure an extremely competitive offer from a lender that recognized the asset’s long-term value. We ultimately closed the loan within the 50-day window, while fulfilling the terms that the borrower needed.”