MetLife Takes Down Big Silicon Valley Loan
MetLife has originated a $545 million long-term mortgage on a portfolio of office and multi-family properties in Silicon Valley.
The 20-year loan was provided about two weeks ago to Sobrato Organization, a family-owned developer and property owner in Cupertino, Calif. The fixed-rate debt is backed by a pool of four office properties, totaling 816,000 square feet, and three apartment complexes.
The leverage is in the neighborhood of 60%, which pegs the value of the properties at around $910 million.
The office properties include the 260,000-sf Commonwealth Corporate Center, a recently completed campus in Menlo Park. Sobrato unveiled plans for the $106 million development in 2012 and began construction a couple of years later — before landing any tenants. It later lined up data-storage company EMC to occupy one of the two buildings. The word is that the remainder of the space has since been leased up. EMC and computer maker Dell were combined in September in a $60 billion deal to form Dell Technologies, described as the biggest private technology firm in the world.
Commonwealth Corporate Center is on 13 acres at 151 Commonwealth Drive and 164 Jefferson Drive, just off Route 101 some 29 miles south of San Francisco.
The residential component of the portfolio includes the Domicilio luxury apartment complex in Santa Clara. Its 306 units range from studios to three-bedroom apartments. The property has a pool, a clubhouse, a fitness center and electric-vehicle charging stations. It’s at 431 El Camino Real, near the Santa Clara commuter-rail station and Mineta San Jose International Airport.
Sobrato owns some 7.5 million sf of offices and 30 apartment properties, totaling about 6,700 units, in Silicon Valley and elsewhere on the West Coast. MetLife has provided financing on a number of Sobrato’s properties over the years. Last year, for example, the insurer wrote 20-year loans of $114 million on the 329,000-sf Lawson Lane 1 office complex in Santa Clara, Calif., and $55 million on the 355-unit Lionsgate South apartment complex in Hillsboro, Ore.