Lenders Chase $600 Million SF Loan
An investment group is close to choosing the lender for a fixed-rate loan of roughly $600 million on the high-rise Gateway apartment complex in San Francisco.
The 1,254-unit property is owned jointly by Oak Hill Investments of Menlo Park, Calif., CM Capital of Hong Kong and Prime Residential of Los Angeles.
The partnership’s broker, Eastdil Secured, has already taken bids on the long-term assignment. Lenders were asked to make proposals at varying loan-to-value-ratios hovering in the vicinity of 70%. A decision is expected soon.
The refinancing would enable the Oak Hill team to take a substantial amount of cash out of the property, after retiring its existing $325 million Freddie Mac mortgage. That loan was originated in 2013 by Berkeley Point Capital of Bethesda, Md., and was securitized via two pooled offerings (FREMF 2013-K33 and K34).
The 7.75-acre complex, at 430 Davis Court in the Russian Hill/Embarcadero submarket, was 97% occupied at midyear 2017, according to a servicer report. It encompasses 12 apartment buildings that range in size from two to 25 floors, 58 townhomes, 62,000 square feet of retail space and 916 parking spaces. The Oak Hill team conducted an $11.4 million renovation in 2011. The property, originally called the Golden Gateway Center, was built in phases from 1965 to 1967.
Prime Residential is part of New York-based Prime Group, which also includes fund operator Prime Finance.