Montague Oaks
Summary
Regency Capital Partners (“RCP”) arranged the acquisition financing for this 262,357 SF, eight-building campus located in San Jose, California. Though the tenancy included several marginal credits, and nearly 100% of the building’s leases expired over the next 5 years, RCP was able to explain the rapidly improving dynamics of the Silicon Valley to this Regional Bank. Additionally, the project included a large data center which was difficult for most lenders to underwrite. RCP used its prior data center financing experience to assist the lender in their underwriting, providing “off market” comparable data to help the lender underwrite the in-place, above-market rents; leading to the structure an earn-out on future data center upside. With these property economics, coupled with the strength and experience of the Sponsorship, RCP was able to arrange 65% LTC, non-recourse financing with a 5 year loan term and no prepayment penalty or lockout.
Transaction Details
| LOAN AMOUNT | $22,650,000 |
| FINANCING TYPE | Bridge |
| LENDER TYPE | Domestic Bank |
| PROPERTY TYPE | Office |
PROPERTY ADDRESS |
611 – 695 River Oaks Parkway San Jose, CA |
| PROPERTY DESCRIPTION | The Property is a multitenant office/R&D campus comprised of eight, single-story buildings totaling 262,357 square feet, located in San Jose, California. |