PCCP Provides $103M Loan for Silicon Valley Office Project

Renault & Handley Mid-Peninsula Joint Venture is building 600 Clyde Ave., a 190,000-square-foot development in Mountain View, Calif., which will be occupied in its entirety by Google.
600 Clyde Ave. Image courtesy of PCCP LLC

PCCP LLC has helped pave the way for Renault & Handley Mid-Peninsula Joint Venture’s development of 600 Clyde Ave., a 190,000-square-foot office building in Mountain View, Calif. The real estate finance and investment management firm provided Renault & Handley with a $103 million senior loan for the premier Silicon Valley project, which will be occupied in its entirety by Google.

Renault & Handley is erecting 600 Clyde at 580 and 620 Clyde Ave., a site the joint venture had acquired in 1968. Two light industrial buildings encompassing a total of 75,000 square eventually called the space home until 2018, when they were demolished to make room for the 600 Clyde project. News of Google’s signing of a lease for the entire building emerged during the first quarter of 2019. The project ticked a host of boxes for PCCP.

“This loan provides PCCP with an ideal combination of best-in-market real estate product, robust Mountain View office market, and a long-term lease by a very strong credit tenant,” Dorian Farhang, vice president with PCCP LLC, said in a prepared statement. “Additionally, the project administrator, Renault & Handley, is an established full-service brokerage and property management firm with significant experience in the Silicon Valley market.”

Upon completion, the five-story 600 Clyde will offer such amenities as a 9,600-square-foot sky-deck and a landscaped amenity area spanning 12,500 square feet. The LEED Platinum-certified property will also feature a photovoltaic power generation installation and a storm water harvesting system. Renault & Handley plans to deliver 600 Clyde in July 2020.

Keeping up the pace

With more than $2 billion in mortgage lending, PCCP ranked among the top 10 investor-driven lenders in the U.S. in 2018, according to a report by the Mortgage Bankers Association. And it appears the firm isn’t slowing down in 2019. PCCP’s larger transactions during the first quarter of the year included a $152 million senior loan to Quinlan Development Group and Building and Land Technology for the recapitalization and lease-up of the 270,000-square-foot office tower at 41 Flatbush Ave. in downtown Brooklyn. More recently, the firm provided Sunroad Enterprises with a $145 million senior loan for the development of the 442-unit Sunroad Centrum Phase 6 multifamily project in San Diego.

“Mortgage real estate investment trusts, debt funds and other ‘investor-driven lenders’ are one of the hottest capital sources in today’s commercial real estate finance markets,” according to the MBA report.