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Sep. 10, 2013

Berkeley Point Executes $325M in Refinancing for The Gateway in San Francisco

By Joshua Ayers, Senior Editor

San Francisco—Berkeley Point Capital LLC, along with Freddie Mac, recently closed on the largest single-asset loan in its company history. The 10-year, $325 million refinance loan for The Gateway, a 7.74 acre San Francisco property, was locked-in at a fixed rate of 3.38 percent and is a full-term, interest-only loan.

“Berkeley PoiThe Gateway-SFnt Capital and Freddie Mac had valuable knowledge about the asset and have a long-standing relationship with the asset’s ownership group, giving us an edge in what was a very competitive process,” says Mitch Clarfield, senior managing director at Berkeley Point.

Clarfield headed-up the loan process, working with the sponsor to narrow down options that helped secure a 15-day rate lock for the nearly 50-year-old, multifamily and mixed-use community that has been in both Berkeley Point and Freddie Mac’s portfolio since 1997.

Additionally, Berkeley Point was able to negotiate an extended rate lock that helped to negate any potential rate and spread risks and allowed for repayment of the yield maintenance premium, which will provide “substantial savings to the borrower,” according to a press statement issued by the company.

“We took a very competitive stance in hopes that we could provide our customer an opportunity to lock in a long-term rate at what proved to be near historic lows,” Clarfield says. “We worked closely with Freddie Mac to put an outstanding offer on the table.”

The close of the loan signals the fifth time that Berkeley Point and Freddie Mac have financed the community, which includes refinancing in 1997 and 2005, and second mortgages that were placed in 2001 and 2007.

Built between 1965 and 1967, The Gateway features 1,254 multifamily units in addition to 62,000 square feet of ground-level retail space, with tenants including Safeway, Starbucks and Bank of America. It is located amid the city’s Financial District and is a short distance to the Embarcadero and Ferry Building.

“This is a one-of-a-kind asset and we wanted it to remain in our portfolio for at least another 10 years,” Clarfield says.

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