San Francisco, CA – March 8, 2016 – CBRE Capital Markets’ Debt & Structured Finance team has arranged $26.2 million in balance sheet financing for Silicon Valley Business Park, a six-building, 167,000-square-foot office portfolio located in North San Jose, California.
CBRE arranged the five-year, non-recourse, floating-rate financing at a competitive spread priced over 30-day LIBOR. The financing was provided by a U.S.-based bank with an extensive track record financing commercial real estate located in Silicon Valley.
Brad Zampa, Michael Walker and Megan Woodring of CBRE’s San Francisco office arranged the financing on behalf of the borrower, Vista Investment Group.
“Owner/users are permanently changing the landscape of Silicon Valley, displacing smaller tenants and reducing available inventory from the market. Tenant demand for space in North San Jose is expected to continue, along with rising rental rates and falling vacancy levels,” said Mr. Zampa, Executive Vice President, Debt & Structured Finance, CBRE Capital Markets.
The portfolio, which is 100% leased, is located in the heart of Silicon Valley’s prestigious “Golden Triangle,” at the intersection of Zanker Road and Charcot Avenue. Totaling 11.75 acres, the portfolio encompasses a full city block with six individual parcels and 595 parking spaces, and is conveniently located minutes away from Highway 101 and 87, as well as Interstates 880 and 680. Valley Transportation Authority’s (VTA) Orchard Light Rail is close in proximity and provides a key link to the Bay Area’s mass transit.
North San Jose—and the Golden Triangle submarket specifically—is in the midst of a technology-company fueled renaissance. Over the past 12 to 18 months, leasing and sales activity has erupted from developing companies as well as established Fortune 500, investment-grade tenants. Due to North San Jose’s high quality and relative value, a number of large corporate users have established a footprint in the area. In addition, massive growth in employment in the area has dramatically increased the demand for housing; local developers have recently completed the construction of 3,626 new units, with an additional 3,637 units currently under construction.
About Vista Investment Group
Vista Investment Group, LLC (VIG) is a privately held commercial real estate investment firm founded by Philip and Jonathan Barach. Headquartered in Los Angeles, the company is primarily focused on value-add strategies in multi-family and office in major West Coast markets.
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.
CBRE arranged the five-year, non-recourse, floating-rate financing at a competitive spread priced over 30-day LIBOR. The financing was provided by a U.S.-based bank with an extensive track record financing commercial real estate located in Silicon Valley.
Brad Zampa, Michael Walker and Megan Woodring of CBRE’s San Francisco office arranged the financing on behalf of the borrower, Vista Investment Group.
“Owner/users are permanently changing the landscape of Silicon Valley, displacing smaller tenants and reducing available inventory from the market. Tenant demand for space in North San Jose is expected to continue, along with rising rental rates and falling vacancy levels,” said Mr. Zampa, Executive Vice President, Debt & Structured Finance, CBRE Capital Markets.
The portfolio, which is 100% leased, is located in the heart of Silicon Valley’s prestigious “Golden Triangle,” at the intersection of Zanker Road and Charcot Avenue. Totaling 11.75 acres, the portfolio encompasses a full city block with six individual parcels and 595 parking spaces, and is conveniently located minutes away from Highway 101 and 87, as well as Interstates 880 and 680. Valley Transportation Authority’s (VTA) Orchard Light Rail is close in proximity and provides a key link to the Bay Area’s mass transit.
North San Jose—and the Golden Triangle submarket specifically—is in the midst of a technology-company fueled renaissance. Over the past 12 to 18 months, leasing and sales activity has erupted from developing companies as well as established Fortune 500, investment-grade tenants. Due to North San Jose’s high quality and relative value, a number of large corporate users have established a footprint in the area. In addition, massive growth in employment in the area has dramatically increased the demand for housing; local developers have recently completed the construction of 3,626 new units, with an additional 3,637 units currently under construction.
About Vista Investment Group
Vista Investment Group, LLC (VIG) is a privately held commercial real estate investment firm founded by Philip and Jonathan Barach. Headquartered in Los Angeles, the company is primarily focused on value-add strategies in multi-family and office in major West Coast markets.
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.
