Silicon Valley Project Scores $41M Construction Loan
- Mar 11, 2019
Newmark Knight Frank has arranged $40.7 million in financing for the construction of a 75-unit luxury community in Sunnyvale, Calif. The firm secured the loan on behalf of Lane Partners and Bay Development. California Bank and Trust provided the construction loan and PCCP provided the preferred equity investment. The development is expected to break ground in the second quarter of 2019.
The new community will be located at 311 Mathilda St., near Freeway 90, roughly 13 miles from downtown San Jose. Additionally, the development will be within a 10-minute walk of Sunnyvale Caltrain Station, which also offers access to San Jose’s downtown. The development is close to approximately 75 national and boutique eateries and shopping options, also providing quick access to Silicon Valley tech employers.
The five-story development is set to feature a landscaped courtyard and roof deck, a fitness center and a clubhouse. In addition, apartments will feature private terraces.
“Even in an environment of escalating building costs, we continue to see strong interest from the debt markets for well-located multifamily construction opportunities. The result here was that we were able to execute another core development deal that exceeded our clients’ expectations,” said Ramsey Daya, vice chairman at NKF, in a prepared statement.
NKF’s Daya and Senior Managing Director Chris Moritz represented the borrower in the financing efforts.
Rendering courtesy of Lane Partners and Bay West Development