SAN FRANCISCO — CBRE has arranged $500 million for the refinancing of 1655 and 1725 Third Street in San Francisco’s Mission Bay area. Uber Technologies Inc. (NYSE: UBER) occupies the office property, which serves as the ridesharing company’s global headquarters. The asset comprises two 11-story, Class A office buildings totaling 586,208 square feet.
The borrower is a joint venture between affiliates of Alexandria Real Estate Equities Inc., Uber and the Golden State Warriors, an NBA team that plays at the adjacent Chase Center. The joint venture refinanced the office development with a five-year, fixed-rate CMBS single-asset, single-borrower (SASB) loan.
Brad Zampa and Mike Walker of CBRE secured the nonrecourse loan through Goldman Sachs and Barclays, both headquartered in New York.
Both buildings are LEED Gold-certified and include a full-service, two-story café, barista-managed coffee bar, smoothie bar, event lounge and landscaped rooftop decks. Additionally, the properties are adjacent a to large fitness center, ground-floor restaurants and ample parking, and are part of Thrive City, a community gathering space.
In the fourth quarter of 2024, the overall vacancy rate for San Francisco’s office market decreased by 40 basis points to 36.5 percent, according to CBRE. Net absorption turned positive for the first time since the start of the COVID-19 pandemic in early 2020.
“The San Francisco office market is showing significantly stronger leasing fundamentals over the past few quarters and is experiencing a resurgence in investor activity,” says Zampa. “Our team is actively marketing multiple value-add and stabilized West Coast office assets, and we’ve seen an increased amount of liquidity for both debt and equity in the office sector — particularly for high-quality, well-leased trophy assets such as the Uber headquarters.”
Uber’s stock price opened at $75.07 per share Wednesday, Feb. 12, up from $69.12 one year ago.
— Amy Works and Kristin Harlow