Stockbridge Lands $700M for Bay Area Office Portfolio

Stockbridge Capital has secured a $700 million refinancing loan for a five-property, 1 million-square-foot office portfolio in San Mateo, Calif., according to a Morningstar presale report. JPMorgan Chase Bank, German American Capital Corp. and Wells Fargo Bank issued the floating-rate note.

Midland Loan Services Inc., a division of PNC Bank, together with Situs Holdings served as servicer and special servicer, respectively.

The refinancing package has an initial two-year term with the possibility of three one-year extensions. Out of the total amount, $600 million will retire existing debt across the portfolio and $56.4 million will serve as upfront reserves, while $33.6 million in equity will be returned to the sponsor and cover closing costs.

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Over the course of last year, commercial real estate lending saw a significant rebound, reaching approximately $706 billion and marking a 40 percent increase from 2024’s figure and a 65 percent increase compared to 2023’s values, according to the Mortgage Bankers Association. This momentum was supported by stabilizing capital markets, signaling a growing confidence across the commercial real estate finance market.

A closer look at the Bay Area portfolio

Reaching a total of more than 1 million square feet of office space, the portfolio consists of four-story properties completed between 2017 and 2023, all located within the Bay Meadows campus. They are:

• Station 1, a 219,831-square-foot property at 2750 S. Delaware St, featuring floorplates measuring 73,000 square feet
• Station 2, a LEED Gold-certified, 189,103-square-foot property at 2850 S. Delaware St., featuring floorplates ranging between 10,910 and 60,452 square feet
• Station 3, a 174,000-square-foot property at 2950 S. Delaware St., featuring 54,984-square-foot floorplates
• Station 4, a LEED Gold-certified, 210,000-square-foot property at 3050 S. Delaware St., with floorplates measuring between 13,247 and 66,864 square feet
• Station 5, a 218,554-square-foot property at 3150 S. Delaware St., featuring 71,000-square-foot floorplates.

Roblox is the largest tenant at the campus, occupying 940,275 square feet across all five properties, while Workday and Freshworks lease the rest of the office space. The Stations were fully leased at the time of the deal. Newmark oversees leasing activity.

The buildings are located near several major thoroughfares, including U.S. Route 101 and California State routes 82 and 92, which connect the campus to downtown San Francisco, 21 miles north. Additionally, the campus is midway between Bay Meadows Park and Hillsdale Shopping Center, less than 1 mile.