Belmont Community Lands $105M Refi
Värde Partners issued the note for the 250-unit property.
Windy Hill Property Ventures has secured a $105 million refinancing loan for Artisan Crossing, a 250-unit community in Belmont, Calif. In 2021, Square Mile Capital Management originated $131.2 million in financing for the property. Part of the proceeds was a first mortgage loan of $76 million issued by Bank OZK and $55.2 million in preferred equity.
Värde Partners issued the loan, while JLL arranged the financing proceedings. The floating rate note carries an initial three-year term with two one-year extension options. Retiring the construction loan, the bridge note also helps the lease-up process at the newly debuted property.
Rising four stories, Artisan Crossing includes studio, one- and two-bedroom floorplans ranging between 415 and 1,106 square feet. To comply with the City’s Inclusionary Housing Ordinance, the community provides 38 units reserved for families earning less than 80 percent of the Area Median Income.
READ ALSO: Why Multifamily Finance Is Poised to Come Back to Life
Apartments feature quartz countertops, air conditioning and a private patio or balcony, to name a few. Community amenities include a clubhouse, conference room with work pods, gym, swimming pool, as well as a pet spa, among others.
Located at 1325 Old County Road in downtown Belmont, Artisan Crossing is less than 1 mile away from U.S. Route 101, while San Francisco’s city center is some 23 miles northwest. The 19-acre Twin Pines Park and the Belmont train station, as well as the Notre Dame de Namur University, are within walking distance.
JLL Senior Managing Director Chris Gandy alongside Director Tom Gilliland spearheaded the financial arrangement on behalf of Windy Hill Property Ventures.
Artisan Crossing’s watery challenges
W.L. Butler served as the general contractor, while BDE Architects provided design services for Artisan Crossing. Notably, the construction process faced some challenges due to the existence of a groundwater table 9 feet below ground, according to prepared remarks by W.L. Butler Constructions Senior Project Manager Jaime Perez.
To overcome the obstacle, EPRO joined the development team. The waterproofing solutions provider protected the structure via the installation of roughly 16,000 square feet of product applied at the walls and another 88,000 square feet applied underslab.
San Francisco multifamily investment sentiment continues to falter
Year-to-date through May, 11 assets changed hands in Greater San Francisco for $160 million—81.4 percent less than the figures recorded last year during the same interval—according to a recent Yardi Matrix report. Last year’s deal volume was the lowest recorded this decade, dropping to $1.2 billion, the same report shows.
Despite the lackluster investment environment, San Francisco’s advertised asking rental rates went up by 0.5 percent on a trailing three-month basis through May, outshining the national average by 20 basis points for the first time in more than a year, the same source reveals.
One asset that recently changed ownership in metro San Francisco is Tralee Village, a 130-unit in Dublin, Calif. With renovation in mind, Cityview purchased the community from JB Matteson. The latter acquired it for $55 million in 2017.
