ACORE Provides $183M Acquisition Loan for Calif. Office Campus
Invesco and Harvest Properties have scored $182.6 million in financing for the acquisition and renovation of six buildings in Peninsula Office Park, a mid-rise Class A office campus in San Mateo, Calif., Commercial Observer can first report.
ACORE Capital provided the seven-year debt, which comprises both a first mortgage and a mezzanine loan.
The transaction closed on July 27 and was arranged by Eastdil Secured.
“Peninsula Office Park is an excellent asset that is ideally situated in fundamentally strong market,” Kyle Jeffers, a managing director at ACORE Capital, told CO. “The property’s high quality together with its blue chip sponsors, who have impressive track records of creating value, gave us full confidence in originating this customized loan. This flexible financing solution demonstrates what makes ACORE’s lending platform so powerful and compelling to borrowers.”
The 447,406-square-foot campus is located at 2988, 2800, 2755, 2655, 2929 and 2955 Campus Drive in the Central County submarket of the San Francisco Bay Area, and boasts views of San Francisco Bay and San Mateo Bridge.
Los Angeles real estate investment trust (REIT) Hudson Pacific Properties sold the six buildings to Invesco and Harvest Properties for $210 million last month, according to an announcement at the time of the sale. As of the end of the first quarter, the buildings were 83 percent occupied, per Hudson’s announcement.
Invesco and Harvest Properties are planning moderate renovations at the property, sources said, including building upgrades and cosmetic enhancements.
In January this year, the REIT sold another building on the campus for $22.5 million to Golden Pacific Investments, according to The Registry.
On-site amenities include bike storage, fitness center and locker room with showers and conference facilities.
Local food and beverage options include Urban Flame Restaurant, Z Sausage, Toa Yuen Restaurant, Southwest Grill and Starbucks at Piazza’s Fine Foods, according to 42Floors.
Officials at Invesco did not immediately return a request for comment. Officials at Harvest Properties could not immediately be reached.