Dealmaker: CBRE Arranges $145M in San Diego
CBRE Capital Markets Debt & Structured Finance team arranged $144.5 million for San Diego office/R&D and mixed-use assets.
The firm arranged $111.5 million to refinance San Diego office/R&D campus Rancho Vista Corporate Center. The San Francisco-based CBRE team was led by Mike Walker and Brad Zampa included Megan Woodring and Taylor Shepard. They secured the Annaly Commercial Real Estate floating-rate financing for Swift Real Estate Partners, San Francisco.
“Lender demand for the Rancho Vista refinance was extremely strong, driven by the strength of the sponsorship and the leasing demand we are witnessing in the submarket,” Walker said. “Investment-grade companies are looking to establish or expand employment in the region and capital continues to gravitate toward top-tier sponsors in gateway markets like San Diego.”
Rancho Vista Corporate Center includes several office/R&D buildings and a three-story Class A office building, all of which total 816,771 square feet on 67 acres. The campus is at 16399 West Bernardo Drive within the Rancho Bernardo Industrial Park just west of Interstate 15.
Swift Real Estate Partners acquired the property in 2016 and has since completed a $70 million transformation of the entire campus including upgraded building systems, new façades and increased connectivity between the buildings. Swift recently completed the final stage of its repositioning strategy, which included converting Building 60 from an R&D use to Class A Creative Office.
In San Diego’s Hillcrest neighborhood, Mark McGovern, Morgon Fraser, Brian Cruz and Colby Matzke of CBRE’s San Diego office arranged a $43 million construction loan with a three-year initial term for Hillcrest 111, a seven-story mixed-use property.
A joint venture between Greystar and Cigna Investment Management is developing Hillcrest 111 at 635 Robinson Avenue. When complete, it will include 111 residential units including nine low-income apartments and 3,200 square feet of retail space on the ground floor. “Hillcrest has long been one of the most exciting and densely populated neighborhoods in San Diego due to its rich history and vibrant culture,” said McGovern. “The rapid growth of surrounding neighborhoods like North Park and University Heights over the past ten years has made Hillcrest an even more desirable area for investment and development.”