CBRE Secures $98 Million For 180 Montgomery St
CBRE secured $98M on behalf of Sidra Montgomery to finance the acquisition of the 180 Montgomery St office tower in San Francisco from CBREI Global Investors. J.P. Morgan provided the 10-year, non-recourse, fixed-rate loan.
The CBRE Capital Markets’ debt and structured finance team led by EVP Brad Zampa, Michael Walker and Megan Woodring arranged the financing. Despite headwinds in the market, the location of the property and strong financials drew healthy interest, according to Brad. “Given the recent volatility in the capital markets, we were pleasantly surprised by how aggressively life companies, and US and foreign banks, pursued the asset, offering both fixed- and floating-rate options. This is a testament to its excellent location adjacent to public transit, consistently solid operating history, credit tenancy and highly experienced sponsorship,” he says.
The 25-story, more than 300k SF building sits in the heart of the city’s Financial District. It is fully leased and considered a trophy building, counting Bank of the West as an anchor tenant. Built in 1979, it holds LEED Gold certification.
Trophy acquisitions have become rarer since the beginning of the year when capital markets turned unfavorable. Still, full or near-full occupancy deals in strategic locations are finding funding.