Dealmaker: Newmark Knight Frank Arranges $36M Refinancing, $39M Sale

Newmark Knight Frank, New York, arranged $36 million in refinancing on behalf of DivcoWest for 180 Townsend, a four-story, 41,000-square-foot San Francisco office building.

The asset is currently undergoing renovations to accentuate existing features such as the brick facades, windows and ceiling clear heights as ownership makes upgrades to match the property’s location and create a Class A creative office environment.

NKF Vice Chairman Ramsey Daya and Senior Managing Director Chris Moritz executed financing on behalf of owner DivcoWest, a privately owned, vertically integrated operating company. They placed the loan with JP Morgan Asset Management.

Located in San Francisco’s South of Market neighborhood, the property is close to amenities including restaurants, housing and major sports venues such as AT&T Park and the new Chase Center, and presents direct access to municipal public transportation, commuter trains to Silicon Valley and several freeway options. Venture capital firm Andreessen Horowitz occupies the entire building.

“Given the property’s superior infill San Francisco location coupled with the strength of the long-term tenancy, lenders expressed significant interest in the opportunity,” said Daya.

Park Del Amo

NKF also completed a $39 million off-market sale of Park Del Amo, a three-building, 204,500-square-foot office campus located at 2355 and 2377 Crenshaw Blvd. in Torrance, Calif.

NKF Co-Head of U.S. Capital Markets Kevin Shannon, Executive Managing Director Ken White and Senior Managing Director Michael Moore represented seller TA Associates, Boston. Buyer Omninet, a Beverly Hills venture capital firm, represented itself.

“The buyer was attracted to the asset’s central location, given its proximity to two major arterials and convenient access to the deep Central Torrance amenity base,” said Moore. “Additionally, the Palos Verdes Peninsula area offers abundant executive housing, which is a compelling draw for recruiting and retention of senior talent.”

Shannon said the sale price represented a substantial discount to replacement cost “and a massive basis advantage compared to the adjacent El Segundo office submarket.”

Built in 1985, Park Del Amo sits on 12.7 acres and is 92 percent occupied by multiple tenants.