Clint Reilly Lands $50M Refi for San Francisco Asset

Clint Reilly Cos. has secured $50 million in refinancing for Merchants Exchange Building, a 245,000-square-foot office building in San Francisco. Axonic Capital issued the senior loan in a deal brokered by Northmarq.

The floating-rate note is set to mature in 2029 and carries two one-year extension options. Affinius Capital was the incumbent mezzanine lender. The property, which came online in 1903, was 80 percent leased upon closing the deal.

Previous financing includes a $92.7 million permanent loan originated by Wells Fargo in June 2018, according to Yardi Matrix data. Clint Reilly Cos. purchased the asset in 1995 from Shorenstein for $17.5 million, or $66 per square feet.

Located at 465 California St., the property is within the city’s North Financial District and 2 miles from its downtown. The 16-story building sits on roughly 1 acre, with floorplans ranging from 15,000 to 15,600 square feet. In addition, the building features 21,000 square feet of ground-level retail.

The tenant roster currently comprises multiple law firms, as well as Julia Morgan Ballroom, Merchants Exchange Club and The Asia Foundation.

Nationally, office loan originations saw a 95 percent year-over-year increase in dollar volume as of the fourth quarter of last year, according to a Mortgage Bankers Association report. Quarterly, this figure dropped 1 percent, reinforcing the mixed signals in office real estate trends.