Natixis Lends $195M on Silicon Valley Office Portfolio
Meridian Capital Group has arranged $195 million in bridge financing for Preylock Real Estate Holdings’ acquisition of seven triple-net leased office properties in Santa Clara, Calif., Commercial Observer can first report.
Natixis provided the seven-year, floating-rate loan which has a five-year term with two one-year extension options and full-term interest-only payments, sources familiar with the transaction told CO.
Meridian’s Kovi Elkus, Jackie Tran and Seth Grossman negotiated the debt.
Representatives for the brokerage declined to comment on the lender’s identity, but said that the transaction generated competition from a variety of lenders and was ultimately closed with an “international bank that was able to provide flexible property release provisions and a competitive spread over LIBOR.”
The 626,000-square foot-office campus consists of seven buildings that are 100 percent leased to technology companies Nvidia and Huawei; 2770 to 2800, 2880 and 2890 Scott Boulevard; 2220, 2300 and 2330 Central Parkway and 2001 Walsh Avenue.
Four of the properties serve as the U.S. headquarters for Huawei—a multinational telecommunications equipment company. The other three buildings are leased to pc gaming and computer graphics company Nvidia.
“With seven properties, two tenants, multiple lease expiration dates, and different uses throughout the buildings ranging from office to warehouse to high-tech cleanrooms, Preylock was focused on obtaining a loan that was complementary to the entirety of their business plan, with a lender that was supportive of their vision,” Elkus said in prepared remarks. “Meridian was successful in identifying a lender who could quickly underwrite this transaction and close in only 34 days after signing a term sheet, a rarity for a portfolio of this size.”
Preylock, a Los Angeles-based real estate operator and investment company, is focused on the acquisition of value-add and core-plus office buildings in West Coast sub-markets. To date, the firm has acquired three assets totaling 1 million square feet, investing approximately $400 million.
According to CoStar, Preylock finalized a deal with Blackstone in May to acquire an office building at 2851 Junction Avenue in north San Jose, Calif. for $82 million. The four-story, 155,613-square-foot property is leased to Taiwan Semiconductor Manufacturing Co.
Natixis is having a busy fourth quarter. The transaction comes hot on the heels of a $266 million acquisition loan that the French bank provided to TriStar Capital and RFR Holding for the partnership’s purchase of Centre 425—a 16-story, Amazon-occupied office property in Bellevue, Wash.
A spokeswoman for Natixis did not immediately return a request for comment.