MetLife Provides $68M to Beacon Capital for San Jose Office Tower Buy
MetLife Investment Management provided Boston-based Beacon Capital Partners with a $68 million loan to help fund the acquisition of a 16-story office tower at 160 West Santa Clara Street in downtown San Jose, Calif., the life insurance company announced last week. The five-year term loan closed on May 9.
Beacon closed on the acquisition of the roughly 212,000-square-foot office tower for $101.5 million, purchasing it through the firms Beacon Capital Partners Fund 8, sources told Commercial Observer, marking the firm’s first foray into the San Jose market. The seller was PNC Realty Investors, acting as manager and trustee of AFL-CIO Building Investment Trust in the deal, The Registry reported.
PNC Realty first acquired 160 West Santa Clara Street in 2015 for $76.3 million, and Eastdil Secured, which has an office at 160 West Santa Clara, advised PNC on the sale of the mixed-use tower, according to CoStar.
In April, Beacon Capital also sold one of its Boston buildings at 177 Huntington Avenue in the city’s Back Bay neighborhood to PNC for roughly $138 million, according to a CoStar Group report. It’s PNC first asset in Boston.
Beacon scooped up 177 Huntington Avenue for $59 million in 2012, later renovating the tower in 2014 following the exodus of tenant Wayfair, a e-commerce home goods company, in 2014. Beacon has since fully leased up the office building, which is now anchored by Northeastern University, according to CoStar. HFF brokered the sale of 177 Huntington Avenue for Beacon, CoStar reported.
MetLife declined to comment further on the transaction. PNC Realty could not immediately be reached.