SAN FRANCISCO — Berkeley Point Capital LLC and Freddie Mac have arranged $325 million in refinancing for The Gateway, a 1,254-unit multifamily property with more than 62,000 square feet of ground-floor retail space in San Francisco’s central business district. The interest-only loan includes a 10-year term at a fixed rate of 3.38 percent.
The property, built on nearly eight acres between 1965 and 1967, offers residents both city and San Francisco Bay views. Among the retail tenants are Safeway, Starbucks and Bank of America.
The Gateway has been in the portfolios of Berkeley Point and Freddie Mac since 1997. The organizations previously refinanced the property in 1997 and 2005, and second mortgages were placed in 2001 and 2007.
“This is a one-of-a-kind asset, and we wanted it to remain in our portfolio for at least another 10 years,” says Mitch Clarfield, originator of the loan and senior managing director at Berkeley Point.
Due to their familiarity with the borrower and the asset, Berkeley Point and Freddie Mac were able to lock in the interest rate within 15 days of beginning negotiations. Berkeley Point was also able to extend the rate lock at minimal cost to the buyer, allowing for long-term savings for the borrower, of which a name was not disclosed.
“Berkeley Point Capital and Freddie Mac had valuable knowledge of the asset and have a long-standing relationship with the asset’s ownership group, giving us an edge in what was a very competitive process,” says Clarfield. “We took a very proactive stance in hopes that we could provide our customer an opportunity to lock in a long-term rate at what proved to be near historic lows.”
Consisting of four high-rise towers interspersed with townhomes, The Gateway’s multifamily component offers floorplans ranging from studio to four-bedroom. In addition to the aforementioned on-site shopping, the property also boasts close proximity to the popular Embarcadero waterfront area and San Francisco financial district.
Berkeley Point Capital, headquartered in Bethesda, Md., is owned by affiliates of Ranieri Real Estate Partners LP and WL Ross & Co. LLC. Between 1997 and 2000, the company was formed by the merger of three family-owned companies, each of which were among the early participants in the Fannie Mae, Freddie Mac and FHA multifamily financing programs.
Today, Berkeley Point also offers life company and bridge financing options and works with multifamily properties ranging from conventional to affordable, seniors and student housing. The lender’s portfolio totals more than $29 billion in 2,100 loans.
— John McCurdy