Broadreach Nabs $150M From NYSTRS to Complete Google’s New Silicon Valley Office
Broadreach Capital Partners secured a $150 million permanent loan from the New York State Teachers’ Retirement System (NYSTRS)—one of the country’s largest pension funds—to help complete the development of a new Google office building at 1625 Plymouth Street in Mountain View, Calif., brokerage HFF announced Tuesday.
The fixed-rate loan closed following the completion of the building’s warm shell, which means the building’s interior isn’t fully complete but is ready to be leased up. The deal closed on June 6, according to a spokeswoman for HFF.
“Working with the team at Broadreach Capital Partners and assisting them in securing a new relationship with NYSTRS was a tremendous opportunity,” HFF Senior Managing Director Bruce Ganong said in a prepared statement. “We are excited to watch the continued progress on site as the tenant completes their work and occupies this best-in-class office building.”
Google has leased out the entire 245,738-square-foot, six-story office building, according to Broadreach’s website. The property also includes a five-story parking garage.
Located in Google’s hometown of Mountain View, about one hour northwest of San Jose, the property was designed by New York-based architecture firm WRNS Studio and built to suit for the internet giant. Google has started its work on the interior, and Broadreach expects the building to be fully complete this year.
San Francisco-based construction manager Nova Partners was retained by Broadreach to manage the project’s ground-up development and oversee the budget and construction schedule, according to Nova’s website.
Competition for the deal was fierce and ran the gamut, Ganong told Commercial Observer, with multiple commercial banks and commercial mortgage backed securities (CMBS) lenders, among others, battling it out for the financing. Interested parties included TH Real Estate, Northwestern Mutual, AIG, Société Générale and Wells Fargo, and CMBS lenders such as Deutsche Bank, Goldman Sachs and J.P. Morgan.
“It’s a pretty conservative leverage request too,” Ganong said. Although he wouldn’t provide the exact leverage level, he hinted that it was “core-profile leverage.” Ganong declined to comment on details of Google’s long-term lease agreement.
Neither officials at Broadreach nor Nova Partners could immediately be reached. A representative for NYSTRS could not provide comment before publication. Representatives for Google did not immediately respond to a request for comment.