Square Mile Lends $77M on Downtown San Fran Office Building
By Mack Burke August 5, 2019 12:48 pm
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Square Mile Capital Management has provided $77 million to finance the purchase and renovation of One Montgomery Tower, an office building in San Francisco’s Financial District, according to information from Square Mile.
The loan package was made to a joint venture between AEW Capital Management and REDCO Development, according to Square Mile. The deal funded the $82 million acquisition of the 100,000-square-foot building in June by the JV, which also includes Bain Capital, according to a report from IPE Real Assets.
Brad Zampa and Mike Walker out of CBRE (CBRE)’s San Francisco office brokered the debt.
The remaining funds will be used for a capital expenditure campaign as part of a partnership between Bain and REDCO, who are aiming to deploy around $250 million to invest in value-add office and industrial assets in the Bay Area and Seattle, according to IPE’s report.
Designed by Skidmore, Owings and Merrill, the 38-story tower is located at 1 Montgomery Street has been home to a commercial branch of Wells Fargo (WFC) since 1984. The banking giant is expected to vacate by the end of this year, at which point the building will be upgraded and optimized for creative and flexible office use.
Currently, the building has floor plans ranging from 2,000 to over 20,000 square feet for both full-floor and multi-level establishments, the building’s website shows.
The property also features valet parking at a subterranean level, a rooftop deck and two landscaped roof gardens, amenity space that includes a tenant lounge and conference and fitness centers.
Officials at AEW and REDCO could not immediately be reached for comment. Bain could not be reached.
