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9/21/16
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Encore Capital Management has obtained $34 mil in ground-up construction financing for the development of a mixed-use property comprised of 90 for-sale housing units above ground-level retail space in San Francisco. The loan was arranged by George Smith Partners (GSP).
The planned development is located at Jones and McAllister, in the city’s Mid-Market area. The site is adjacent to the Financial District, Civic Center and Union Square, and within walking distance of several popular dining and shopping destinations. The ground-floor retail space is designed for restaurant use, and can be sold to a single user or easily subdivided and sold to two separate owner/operators in the future.
GSP’s Jonathan Lee, David Stepanchak and Adam Candler arranged the non-recourse construction loan with only a completion and carve-out signature – there is no repayment guarantee. Sized to 60% of actual costs, the loan is priced at LIBOR plus 400 with a term of three years, and includes an option to extend an additional one year.
“Our target buyers are singles and young couples who want to be near the vibrancy of mid-market, as well as empty nesters that are retiring, downsizing and moving back into the area,” notes Hector Calderon, Managing Director of Encore Capital Management. “These are individuals who want to enjoy a walking lifestyle, and take advantage of being within four or five blocks of some of the hottest neighborhoods in the city.”
San Francisco’s Mid-Market has transformed in the past four years, attracting major tech companies such as Uber, Square, Dolby and Twitter. The result is a tremendous number of new jobs within walking distance of our planned development. Calderon notes that walkability is a prime consideration when developing in this urban core.
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