Natixis Finds Refi Answers for Silicon Valley Trio

By Scott Baltic, Contributing Editor

Silicon Valley, Calif.—Through its Los Angeles office, Natixis has originated three loans totaling $75 million to refinance a portfolio of office buildings in Silicon Valley, the company announced late last week. The loans, which were uncrossed, were provided to Pollock Realty Corp. through Natixis’ CMBS and portfolio lending programs.

3495 Deer Creek Road in Palo Alto, Calif.

The first property, 3495 Deer Creek Road, is an 81,000-square-foot office building in Stanford Research Park in Palo Alto. It is fully leased to EMC Corp., which will be vacating in the near future as part of a strategic decision by EMC’s new parent company, Dell.

Natixis used its portfolio lending program to provide a $33 million floating-rate loan with a two-year initial term and two one-year extension options. The loan refinances the existing debt and funds future leasing costs.

3408 Hillview Ave. is a 56,279-square-foot office building that also is in Stanford Research Park. It’s 100 percent leased to SAP Labs, a subsidiary of SAP North America. Natixis employed its CMBS program to provide a $30 million, 10-year, fixed-rate loan to refinance the existing debt and fund outstanding leasing costs associated with SAP’s recent extension.

350 Marine Parkway is a 34,800-square-foot office building in the Redwood Shores region of Redwood City. The property is 100 percent leased to three tenants and was refinanced with a $12 million fixed-rate loan with a five-year term.

Each of these three properties has a different business plan and each is at a different stage in the stabilization cycle, Greg Murphy, head of Natixis Real Estate Finance Americas, told Commercial Property Executive.

One property was already stabilized and ready for immediate CMBS execution, while a second needed some short-term seasoning to stabilize and take full advantage of an efficient CMBS execution. The final property was truly transitional in nature and needed medium-term financing to lease-up and stabilize.

Natixis’ wide product base, Murphy said, provided financing solutions for these assets with very different profiles.

The transaction was arranged by Gregory Gray of Barry Slatt Mortgage.