San Jose R&D Property Lands $46M Bridge Loan
- Mar 15, 2019
Vertical Ventures has received $46 million in financing for Hellyer Oaks, a 347,434-square-foot technology park in South San Jose, Calif.
NorthMarq’s San Francisco office secured a bridge financing loan for the owner, with a floating-rate and two-year interest-only term.
“Following the impressive leasing velocity since Vertical Ventures’ acquisition, this new financing facility both reduced borrowing costs and provided additional capital needed to fully stabilize the project,” Nathan Prouty, NorthMarq Capital’s senior vice president & managing director, said in a prepared statement.
Located at 5215 Hellyer Ave., on nearly 21 acres, the property is near U.S. 101, offering convenience to the Greater San Jose CBD.
Hellyer Oaks was originally built in 1984 and completely renovated in 2012. Vertical Ventures acquired the property in 2017 and since taking ownership, it has upgraded the asset with the addition of new outdoor amenities.
“The borrower will continue to improve spaces for tenants drawn to the desirable campus-like setting in South San Jose, an attractive alternative to the more costly and undersupplied downtown market,” Prouty said.
R&D in strong demand
According to Vertical Ventures research, the South San Jose R&D market has seen large growth over the past few years and boasts one of the most compelling stories within the current Silicon Valley landscape.
Cushman & Wakefield’s most recent Silicon Valley Market Beat for R&D properties revealed job growth in the San Jose metro showing increases of 3.2 percent year-over-year, which was larger than any other city in the Bay Area in 2018.
Last Summer, NorthMarq Capital arranged a $157.3 million construction-to-permanent loan for Bohannon Development Co. and Alexandria Real Estate Equities for Phase II of Menlo Gateway, a 16-acre master-planned development in Menlo Park, Calif., in the San Francisco Bay Area.
Image courtesy of NorthMarq