Square Mile Invests $131M in San Francisco-Area Apartments

Artisan Crossing. Image courtesy of Square Mile Capital

A joint venture led by Windy Hill Property Ventures has received a $131.2 million investment for its property in Belmont, Calif., dubbed Artisan Crossing.

Square Mile Capital Management LLC originated the investment, split into two, for the 250-unit community. The firm partnered with Bank OZK to place a $76 million first mortgage loan for Artisan Crossing and retained a $55.2 million preferred equity investment with the community.

The investment was arranged by Cushman & Wakefield’s Terry Daly and Dan McLeod.

The four-story Artisan Crossing will be located a short walk away from the Belmont CalTrain station. The community is also being built with a fitness center, outdoor courtyard, dog spa, business center, outdoor amenity decks, bicycle storage and two levels of underground parking.

Eric Cohen, principal at Square Mile Capital, said in prepared remarks that the firm is confident in transit-oriented projects in Silicon Valley, with Belmont expected to be one of the next markets to develop around CalTrain.

PROVIDING PREFERRED EQUITY

Matthew Drummond, managing director at Square Mile Capital, said in prepared remarks that the firm has committed nearly $350 million of preferred equity so far in 2021 for developments, acquisitions and recapitalizations. Drummond added in his prepared remarks that he expects the firm to continue the equity momentum through the end of the year.

Square Mile Capital’s investments have included projects of various property types across the U.S. In February, the firm provided $110.4 million in construction financing to The Rise Hollywood, a 369-unit residential project in Los Angeles. In Florida, Square Mile Capital also provided a $82 million bridge loan for a newly-constructed 348-unit apartment community in Fort Lauderdale that’s also under Encore Capital Management’s luxury brand The Rise.