San Francisco, CA – April 8, 2016 – CBRE Capital Markets’ Debt & Structured Finance team has secured $11,650,000 in non-recourse financing for a single-tenant office building located in the Moffett Park business area of Sunnyvale, CA.
Trent Snarr, Vice President of CBRE’s San Jose, California, office arranged the financing on behalf of the client in connection with their acquisition of the property. CBRE secured a sub 4 percent fixed-interest rate on a 30-year amortizing loan with a 10-year balloon and no structured reserves from a national bank.
The property consists of a single-story strategically located office building leased to Honeywell International Inc. (S&P “A”). The tenant recently executed a lease extension securing its long history at the property and commitment to the area. With the acquisition and financing, the client was able to reach its strategy to secure a long-term, stabilized, cash flowing asset.
“This area of Silicon Valley is very robust and is experiencing unprecedented demand and growth,” said Snarr. “The Moffett Park business area is home to many credit and national tech related tenants, and the growth and demand is very appealing to investors.”
More than ever before, both institutional and private capital are in a race to invest in Silicon Valley. The primary attractions are the strong and talented work force, credit tenants, strong absorption trends and significant rent increases.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.
