Knighthead Supplies $58M Refi for Napa Valley Office-Retail Property
By Andrew Coen January 26, 2026 11:57 am
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Zapolski Real Estate has secured a $57.6 million loan to refinance an office and retail asset in California’s Napa Valley, Commercial Observer has learned.
Knighthead Funding provided the loan for the real estate investment firm’s 163,000-square-foot First Street Napa development. The six-building retail center with office space at 1300 First Street in Napa, Calif., debuted in 2017, and is adjacent to a separate mixed-use development that will include a hotel and condos.
“The city of Napa and Napa Valley are experiencing significant long-term tailwinds that support both retail and office demand,” Jonathan Daniel, principal of Knighthead, said in a statement.
First Street Napa is 88 percent occupied with office tenants that include Compass, Lululemon and Silicon Valley Bank, according to Knighthead. The property is also adding restaurant Don Perico, Blue Bottle Coffee and dessert shop Daily Recess as new retail tenants.
Foot traffic at First Street Napa has increased nearly 39 percent since 2021, driven by other building developments in the area, according to Knighthead.
CBRE arranged the debt with a team led by Andy Gross and Brad Zampa.
“Downtown Napa continues to demonstrate strong leasing fundamentals, and First Street Napa is uniquely positioned to capture its long-term growth,” Zampa said in a statement. “This financing reflects lender confidence in the high quality of the asset and its unique location along First Street.”
Zapolski Real Estate did not immediately return a request for comment.
Andrew Coen can be reached at acoen@commercialobserver.com.
