By Ariela Moraru
The S.Hekemian Group secured a $15 million refinancing for a 40,000-square-foot industrial building fully leased to Amazon in San Francisco’s Dogpatch neighborhood. Principal Commercial Capital, Principal Real Estate Investors’ CMBS platform, is the primary servicer of the 10-year, fixed-rate loan, which will refinance the existing mortgage on the property. HFF represented the borrower.
Located at 888 Tennessee St., one block west of Third Street and just off Interstate 280, the asset is close to several restaurants, breweries and other retail destinations. The building is part of a larger project with an estimated market value of $50 million. Designed by David Baker Architects, the project is in the approval phase for 110 units, 5,472 square feet of retail and 83 off-street parking spaces. The front door will be located at 789 Minnesota St.
“888 Tennessee is extremely well located in the heart of the San Francisco’s Dogpatch neighborhood with convenient access and walkability to restaurants, shops and transit,” said HFF Director Chris Gandy – who led the debt placement team – in prepared remarks. “This facility acts as the first Amazon Prime Now location in San Francisco, illustrating the extreme demand for last-mile facilities from the e-commerce industry. We feel that we are in the infancy of a shift to last-mile distribution facilities in dense, in-fill urban environments. The property’s location will only improve over time with the development of Pier 70, the Golden State Warriors Stadium, Uber’s HQ campus and the continued expansion of UCSF.”
Image courtesy of The S.Hekemian Group