Dealmaker: JLL Secures $65M for Office, Multifamily Assets

JLL, Chicago, secured $65.1 million for two assets, 777 Mariners Island Boulevard in San Mateo, Calif. and CityVue Apartments in Eagan, Minn.

JLL Executive Vice President Alex Witt and Managing Directors Alexandra Bryant and John Manning secured $48 million for Wafra Investment Advisory Group, New York, to acquire 777 Mariners Island Boulevard in San Mateo. Wafra purchased the 187,000-square-foot office property from Cornerstone Real Estate Advisers, Hartford, Conn. 

Witt said New York Life provided the seven-year non-recourse loan. 

“With rents nearly 30 percent below market rates and Bay Area office vacancy near historic lows, 777 Mariners Island Boulevard represented a prime opportunity for Wafra,” Witt said. “We anticipate financing to continue to be available for strong sponsors as market fundamentals remain strong and tenant demand remains high.”

Located on the San Francisco peninsula, 777 Mariners Island Boulevard sits in a popular high-technology submarket with major tech tenants nearby and vacancy rates falling to just 4.3 percent in Palo Alto and 2.3 percent in Mountain View. 

In Minneapolis-St. Paul suburb Eagan, Minn., JLL provided a $17.1 million loan through the Fannie Mae Near-Stabilization execution to retire an existing construction loan for CityVue Apartments. The 113-unit Class A high-rise recently converted from a 10-story office property. 

JLL Executive Vice President Scott Streiff said Fannie Mae’s 10-year non-recourse loan came with one year interest-only amortization. “The loan closed at full underwriting proceeds prior to reaching stabilized operations with no holdbacks,” he said.

Located close to downtown Minneapolis-St. Paul, CityVue Apartments should benefit from future commercial developments slated for the area, Streiff said.

“The Fannie Mae Near-Stabilization product allowed JLL to lock rate and lend full proceeds prior to stabilization to CityVue Apartments LLC in order to take advantage of the current attractive interest rate environment.”