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1/06/16
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Windy Hill Property Ventures purchased a 12.8k sf office property in downtown Redwood City in an off-market transaction. The vacant, two-story building is located at 610 Walnut St, near the intersection of two main Redwood City arteries—Veterans Blvd and Main St.
The asset offers convenient access to numerous restaurants, retailers and a thriving downtown commercial center. It is adjacent to the Kaiser Permanente Redwood City Medical Center Hospital and benefits from convenient access to public transportation; located within one mile from the Cal-Train Sequoia station, and half a mile to the Highway 101 on-ramp.
The acquisition was made with $8.8 mil in non-recourse financing that was arranged by Michael Walker of CBRE Capital Markets’ Debt & Structured Finance team. The six-year financing was funded by an East Coast-based life insurance company. It is priced aggressively on a fixed-rate basis and has a flexible step-down prepayment structure.
“The life company balance sheet financing we secured for Windy Hill really is an outlier; The loan provides for 80% of total cost to acquire, reposition and re-tenant the building at terms that are priced well inside where most lenders would transact,” said Walker. “Life companies don’t traditionally finance vacant office buildings. The lender’s attraction to this deal is a testament to the talented team at Windy Hill and the strength of the Redwood City submarket.”
Based on tenant demand, existing leasing activity and developer/investor interest, the San Francisco Peninsula area surrounding the Property is poised for continued growth and investment. Technology tenants continue to grow and occupy available office space in the Peninsula submarkets putting upward pressure on asking rents.
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