Terra Capital Provides $62M Construction Loan for Bay Area Office Project 

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Windy Hill Property Ventures has landed a $61.5 million construction loan for 610 Walnut Street, a ground-up office development in downtown Redwood City, Calif., Commercial Observer has learned. 

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Terra Capital Partners provided the three-year debt.

Centrally located five miles from Stanford University and close to numerous top company headquarters—including Facebook and Oracle—the 70,000-square-foot asset’s surrounding area is comprised of a diverse mix of both students and working professionals. The six-story property includes a terrace overlooking the downtown area.

The transaction is the latest of several loans that Terra Capital Partners has provided in the San Francisco Bay Area, as well as its largest construction loan to date.

In December, the firm received a $150 million line of credit from Goldman Sachs, and expanded its mezzanine debt and preferred equity investment strategy to include senior and stretch-senior loans.

“This transaction reflects how Terra has grown over the past 18 months,” Vik Uppal, CEO of Terra Capital Partners, told CO. “We’ve significantly increased our origination volume and loan size, driven by our ability to provide single-source execution through our senior bridge loan program. 610 Walnut Street reflects the type of investments you’ll see from us going forward, but also our ability to be much more flexible and active in areas of the capital structure that historically we haven’t been.”

The financing is Terra’s second transaction with Palo Alto, Calif.-based Windy Hill, which invests in multifamily, commercial and mixed-use assets in Northern California and the Bay Area. Terra previously provided a $22.5 million preferred equity investment to the developer for a 62,000-square-foot office building in San Mateo. 

“We are pleased to work with Windy Hill once again to provide this first mortgage construction loan for a best-in-class office development in the Bay Area,” Uppal said. “We remain committed to providing innovative and flexible capital solutions to the developers that we partner with, and this closing underscores Terra’s enhanced capability to lend across the full capital structure.” 

“This construction loan from Terra is an important step in realizing our vision and plays a critical role in developing an exceptional and sustainable commercial office space at 610 Walnut Street,” Jamie D’Alessandro, Principal of Windy Hill Property Ventures, said in prepared remarks. “Having successfully partnered with Terra on another large office development in downtown San Mateo, we are excited to work with them again for this latest project.” 

Terra has recently closed loans totaling more than $450 million across the student housing, hotel, apartment and office space sectors, including a $57 million bridge loan to CGI Merchant Group for the recapitalization of a mixed-use property located in Miami, as first reported by CO.