specific requirements to ensure continued talent acquisition
and retention at its new location.
Very few large blocks of high-quality space remain available on
the peninsula, and 395 Page Mill Rd. was the only option with over
100,000 sf of space in Silicon Valley with existing buildings on the
Caltrain line with immediate access to retail amenities and large
75,000-sf floorplates with a creative technology build-out.
According to sources, there was fierce competition for 395 Page
Mill with four interested large credit companies. In fact, a source
tells Forum that the Cloudera’s ultimate sublessor was among its
competitors, actively pursuing the entire building to lease itself.
The 10-acre, nearly 230,000-sf campus features a fully
equipped build-out that allows Cloudera to achieve its goals
without incurring much of the capital costs associated with relocation and tenant improvements. Cloudera plans to move into
the space in late summer 2017. Owned by Jay Paul Co. since
2006, the building is a class-A institutional quality asset originally built by Hewlett-Packard in 2000 for its spin-off of Agilent
Technologies. Located in the heart of Palo Alto, the property
also has its place in Silicon Valley lore as the site of the first corporate office established by William Hewlett and David Packard
upon moving HP out of their Palo Alto garage in 1942.
Newmark Cornish & Carey’s Ben Stern and Jon Cannon
represented the tenant and sublessor, Cloudera. Newmark Cornish &
Carey’s Phil Mahoney and Howie Dallmar represented the landlord, along with Jay Paul in-house rep Janette D’Elia.
SWIFTS’S BIG EAST BAY GET
Wells Fargo Bank wasn’t really on the radar of Swift Real Estate
Partners while the giant landlord searched for tenants last year for
its refurbished office complex in Concord. According to
Christopher Peatross, president and CEO of Swift Real Estate,
“The last tenant we thought we’d sign was Wells Fargo.”
But sign they did. In April 2016, Wells Fargo executives signed
an eight-year lease for 282,238 sf at Swift Plaza. The agreement was
considered to be the largest lease executed in 2016 in the East Bay.
It also brought Swift Plaza’s 482,000 sf from about 50% occupancy
to virtually 100%, according to reports.
The San Francisco-based financial institution will occupy the
entire four-story, 184,606-sf building at 1755 Grant Ave. It’ll also
take up another 97,632 sf at the neighboring building at 1655
Grant Ave. The deal allowed Wells Fargo to consolidating its East
Bay offices into a single large space in an already-tight market.
Cushman & Wakefield’s Whiff Collins represented the tenant,
while Breck Lutz and Alex Grell of Newmark Cornish & Carey
represented the landlord.
ENVIRONMENTAL IMPACT ON LENDING
A key component of the larger Hive mixed-use development that
transforms the historic Broadway Street façade and a former car
dealership, Mason at Hive brought much-needed multifamily
housing to the booming Uptown district of Oakland, CA. The class
A apartment property contains 97 newly constructed units and
eight adaptive reuse units, and has received two sustainability recognitions: a GreenPoint rating and LEED Silver certification.
Bellwether Enterprise put that eco-consciousness to good use in
arranging a $39.72-million refinancing of Mason at Hive’s construction loan.
Specifically, Bellwether leveraged Fannie Mae’s Green
Certification program and the GSE’s Near Stabilization loan pro-
gram for newly constructed properties to create a custom lending
structure. “The Green Certification program encourages develop-
ers to build and renovate with the environmental impact of their
projects in mind,” John E. Ghio, San Francisco-based SVP with
Bellwether Enterprise Real Estate Capital, told GlobeSt.com this
past September. “Due to the project’s sustainable construction, we
had flexibility in creating the lending structure.”
Fannie’s Green Certification program rewards borrowers who
build according to one of eight Fannie-approved certification
reviews. The certification results in interest rates that are significantly
below those for mortgages that haven’t been certified green. Fannie
Mae’s near-stabilization program extends DUS borrowing eligibility
to properties that have not yet been stabilized, and allows the bor-
rower to lock rate and fund at 75% physical occupancy and 60%
economic occupancy, and upon receipt of certificates of occupancy.
For Hive Development Group LLC, a partnership between
Signature Development Group and Delaney Jordan Investments,
the program met the goal of locking in long-term, fixed-rate
financing as quickly as possible. Ghio worked with his Bellwether
Enterprise Real Estate Capital colleague, Trent Brooks, and with
Signature’s Paul Nieto to arrange the financing. ◆
Best of 2016
continued from page 46
This advertising index is provided as an additional service. While every attempt has been made to make this index as complete as possible, the accuracy of all listings cannot be guaranteed.
1 Yardi Systems, Inc.
5 Marcus & Millichap
7 Capital One
11 NAI Global
15 PNC Financial Services
19 Cushman & Wakefield
22 RealShare Apartments
23 NAI Global
30 AG Net Lease
39 Fried Frank
43 Workplace Property Trust
C2 Rockefeller Group
C3 National Association of Realtors
C4 Newmark Grubb Knight Frank
Mason at Hive