3650 REIT Originates $29M Loan for Acquisition of RH HQ in Bay Area
DRA Advisors has secured a $29 million loan to acquire the leasehold interest in 5725 Paradise Drive, a Class A office campus and headquarters of RH (formerly known as Restoration Hardware) in Corte Madera, Calif., Commercial Observer can first report.
3650 REIT provided the loan, while JP LeVeque of Eastdil Secured arranged the financing.
The property comprises 98,000 square feet and is part of the larger, 250,000-square-foot corporate headquarters that includes RH’s Center of Innovation, its design center and a warehouse for all its products, according to a release.
The property has served as RH’s headquarters since 2006, when the company expanded to occupy all five of the campus’ buildings. It can readily be returned to its original multitenant use.
“3650 continues its highly strategic and surgical approach to investing in office assets in key employment markets across the U.S.,” Toby Cobb, co-founder and managing partner of 3650 REIT, said in a statement. “We see 5725 Paradise Drive as a ‘change winner’ in the post-pandemic office market that will continue to be successful, especially given its strong credit-rated tenant in RH.”
Officials at DRA Advisors did not immediately respond to a request for comment.
Emily Fu can be reached at email@example.com.