Bridgeton Holdings got $45M in acquisition financing for the 91,300 RSF 995 Market St in San Francisco.
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The building is part of a wider strategy by the company to acquire key properties in transitioning neighborhoods such as Mid-Market.
The Debt and Equity team from Mission Capital Advisors secured the $45M non-recourse loan for Bridgeton and structured the 1031 transaction. A 1031 exchange defers capital gains taxation on a sold property.
Bridgeton Holdings CEO Atit Jariwala calls the acquisition part of a wider move by his company to acquire marquee buildings in revitalizing neighborhoods. The building’s retail portion is fully occupied by CVS, and WeWork occupies the lion’s share of the office space.
Mission Capital managing director Ari Hirt notes speed was of the essence in securing a 1031 treatment. "Because this deal was the tail end of a 1031 exchange, we were tasked with closing the financing in a very short time frame," Ari told Bisnow. "Despite this, we were able to secure a long-term loan with favorable terms that will not burden the sponsor with a significant prepayment penalty."
The total cost of the property was $62M. It sits in a section of San Francisco that has seen near-zero vacancy. Mid-Market became a tech company destination after the city said in 2011 it wouldn’t collect payroll tax on new employees for six years at any company that located to Mid-Market. Since that time, companies such as Zendesk and Twitter have made their homes there.
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