San Francisco—A partnership led by a Canadian pension fund has taken out a $106.4 million Fannie Mae credit facility on a portfolio of mixed-use buildings in San Francisco.
The facility, provided by Berkeley Point Capital of Bethesda, Md., is secured by 16 mid-rise multifamily properties ranging in size between 12 and 60 units. Some of the assets have retail components. The properties in the portfolio were built between 1900 and 1930 and are located in prime infill neighborhoods.
The borrower is a partnership led by Ivanhoe Cambridge, a Montreal-based fund that owns 178 properties globally, 100 in the United States, that are valued at $36 billion. Ivanhoe’s partner is San Francisco-based Veritas Investments, which manages and/or owns multifamily, retail and mixed-use properties in the Bay Area.
The facility contains both fixed- and floating-rate tranches designed to provide flexibility to the borrower. The partnership can take out extra funds via the facility in order to renovate the older buildings or add properties, or it can pay down the facility if it sells assets in the collateral pool. The floating-rate tranches provide flexibility with the sizing of the facility, while the fixed-rate classes provide an element of cost certainty to the partnership.
Eastdil Secured helped arrange the financing.