This Week's San Francisco Deal Sheet
The weekly compilation of the San Francisco Bay Area metro’s biggest leases, sales, financing deals, construction updates, and personnel moves. Have news you’d like to submit?
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Drawbridge Realty last week acquired a five-story Class-A office building at 200 South Mathilda Ave. in Sunnyvale, California, from JP Morgan Chase. Eastdil Secured represented JP Morgan in the transaction. The property changed hands for $178M and is leased to ride-share company Uber.
The property spans 157K SF, including parking, according to a press release. The property was completed in 2010. The property is transit-oriented, located near Sunnyvale’s Caltrain Station.
“This is a highly appealing Silicon Valley asset leased long-term with a strong tenant in place in an area which continues to attract companies because of the deep regional talent pool, especially in engineering,” Drawbridge Realty Chief Operating Officer Charlie McEachron said in a press release.
“It possesses all of the transit and amenity benefits of a CBD asset in a highly-populated suburban location.”
The acquisition marks Drawbridge’s third major purchase this year, following purchases in Plano, Texas, and in a suburb of Denver.
SALES
The Dinerstein Cos. purchased a 94-unit multifamily property in downtown Santa Cruz last week for an undisclosed price. Swenson Development & Construction sold the property, with Newmark Vice Chairman Scott Bales representing the seller on the transaction.
The FIVE55 Apartments are at 555 Pacific Ave., near the Santa Cruz Boardwalk and Santa Cruz Wharf. The property contains 5K SF of ground-floor retail, along with a two-story parking structure for 100 vehicles. FIVE55 was completed in 2018 and was 99% leased at the time of its sale.
DEVELOPMENT
A new multifamily development offering market-rate housing to the residents of Sacramento was proposed last week, from Alleghany Properties, according to SF YIMBY. The prospective development, dubbed the Natomas II Apartments, would span over 16 acres. It would be a two-phase development containing 472 units across seven four-story buildings.
Amenities for the property would include a 12K SF clubhouse, a game room, a theater, a dog park, 150 indoor storage spaces and 12 outdoor storage spaces. No construction timeline for the project has been announced.
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Presidio Bay Ventures launched a housing development dubbed Ventana Residences last week, the first project to use San Francisco’s affordable housing initiative, HOME-SF. The property is slated to contain 193 units, with 48 dedicated to affordable housing.
“We are proud to develop a project of this scale that is also addressing the city’s housing shortage. Thanks to the City’s HOME-SF program, we were able to triple the number of new affordable units created in District 11 since 2009,” Presidio Bay Ventures founder and Managing Principal K. Cyrus Sanandaji said in a press release.
The property will contain a 9K SF indoor and outdoor childcare space on the ground floor, operated by Wu Yee Children’s Services, a local nonprofit.
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The city of San Jose Planning Commission approved the development of a 607K SF multifamily property dubbed the Orchard Residences last week, according to Connect CRE. The property will also contain 8K SF in ground-floor retail and an underground parking garage.
The property will be at 409 South Second St., near San Jose State University. Westbank will serve as the developer, while James K.M. Cheng Architects will design the property.
FINANCING
Gantry secured a $23M refinancing loan last week for Vacaville Commons, a 400K SF retail center in Vacaville. The deal was facilitated by Gantry principal Tom Dao and senior associate Erinn Cooke on behalf of a private real estate investment partnership.
The 10-year loan was provided by a life company lender at a fixed rate in the 4% range. The property celebrated its 30th anniversary this year. Tenants in the retail center include Safeway, Ross, Chase Bank and Chili’s.
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GI Partners secured $213M in financing via a seven-year, fixed-rate loan through a life insurance company to acquire a five-building life sciences portfolio spanning over 325K SF.
The properties are located across multiple addresses in South San Francisco and San Carlos, at 7000 Shoreline Court, 341-343 Oyster Point Blvd., and 75 and 125 Shoreway Road. JLL Capital Markets facilitated the financing on the transaction. The portfolio is fully leased. All of the properties are located along U.S. 101.
