Newmark, on behalf of the Acclaim Companies, has secured $65.7 million in non-recourse construction financing for the speculative development of 855 Main Street, a 100,000-square-foot office building in downtown Redwood City, CA. Acclaim, a Menlo Park-based real estate company focusing on commercial property investment throughout Northern California, received entitlement approvals for the project this past June and will be developing the project together with a team that includes W.L. Butler and DES Architects.
Newmark’s Ramsey Daya, Chris Moritz and Travis Bailey represented the borrower in the financing efforts.
“Acclaim’s exemplary track record and top notch reputation resulted in a financing process that attracted significant interest from a variety of capital providers,” Moritz said. “With a keen understanding of the Redwood City market and its supply constraints, Square Mile was able to provide competitive terms and move quickly to satisfy the client’s development timeline.”
The state-of-the-art, neoclassical, mixed-use office and retail building will provide prospective tenants with vibrant office space within a short walking distance of downtown multifamily housing, amenities and public transit opportunities, highlighted by Redwood City’s Caltrain Station just a few blocks away.
“We had several debt funds and banks aggressively vying for this financing and we were able to execute another core development loan at terms that exceeded our clients’ expectations,” said Daya. “With this transaction, our Northern California Debt & Structured Finance team has now closed nearly 1,000,000 square feet of ground-up, speculative construction debt in the San Francisco Peninsula over the past three years, including approximately 420,000 square feet in Redwood City alone.”
Located Redwood City’s downtown core, the asset is situated in an area that has undergone a revitalization over the last decade as part of the Downtown Precise Plan (DTTP). Among other new regulations, the DTTP imposed a 500,000 square foot cap on new office development that has now been reached. All five projects entitled under DTTP were 100 percent leased prior to completion, a testament to the market’s strong leasing demand.
Newmark (“Newmark”), operated by Newmark Group, Inc. (“Newmark Group”) (NASDAQ: NMRK), is one of the world’s leading and most trusted commercial real estate advisory firms, offering a complete suite of services and products for both owners and occupiers. Together with London-based partner Knight Frank and independently-owned offices, Newmark’s 16,000 professionals operate from approximately 430 offices on six continents. Newmark’s investor/owner services and products include investment sales, agency leasing, property management, valuation and advisory, diligence, underwriting, government-sponsored enterprise lending, loan servicing, debt and structured finance and loan sales. Occupier services and products include tenant representation, real estate management technology systems, workplace and occupancy strategy, global corporate services consulting, project management, lease administration and facilities management. For further information, visit www.ngkf.com. Newmark Group is a publicly traded subsidiary of BGC Partners, Inc. (“BGC”) (NASDAQ: BGCP), a leading global brokerage company servicing the financial and real estate markets.
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