News Column

Pembrook Capital Management Closes Preferred Equity Financing to Finalize Recapitalization and Redevelopment of San Francisco, Calif. Office Property

February 14, 2014

Pembrook Capital Management, a commercial real estate investment manager that provides financing throughout the capital structure including first mortgages, mezzanine, bridge loans, note financings, and preferred equity for most property types, announced the closing of $7.5 million of preferred equity in a transaction that will help complete the repositioning of a 143,000-square-foot office building in San Francisco'sCentral Market neighborhood.

According to a release, Pembrook's investment bridges a gap in ownership's capital structure, which includes a mezzanine loan in addition to the first mortgage. Total capitalization of the property is approximately $50 million.

Within the past three years, the Central Market neighborhood has seen a significant resurgence. Large-scale residential and commercial development has come back to an area that was neglected for decades. Tech tenants such as Twitter, Square, ZenDesk, CallSocket, Yammer, Uber, Spotify, and One Kings Lane have located in the neighborhood.

Located in the heart of this thriving area, 1155 Market Street is another part of the resurgence. A renovated lobby and entrance, with glass replacing granite for a modern look and better natural lighting, will grace the entry to the building. The developers are also adding a new facade for the first and second stories that will update the look of the building and boost its appeal and marketability.

"We believe this property is well-positioned to benefit from the resurgence in the Central Market district," said Stuart J. Boesky, CEO of Pembrook. "The sponsors have already taken a major step toward stabilization of the property by leasing 72 percent of the space to the City and County of San Francisco. We are very pleased to have participated in the revival of this section of San Francisco with this financing."

Pembrook works with real estate developers and investors to deliver financing for new construction, acquisition, and repositioning, focusing on primary and secondary markets with high barriers to entry. Since inception, Pembrook has originated or participated in over 60 investments totaling in excess of $650 million.

More information:

www.pembrookgroup.com

((Comments on this story may be sent to newsdesk@closeupmedia.com))


For more stories on investments and markets, please see HispanicBusiness' Finance Channel



Source: Professional Services Close - Up


Story Tools