SAN FRANCISCO — Northwestern Mutual has funded a $110 million mortgage loan for Foundry Square I, a 10-story 334,320-square-foot property in San Francisco's Central Business District.
The State Teachers Retirement System of Ohio, which has provided benefits and services to Ohio's active and retired educators for more than 90 years, was the borrower. The terms of the loan, provided by Northwestern Mutual, were not disclosed.
The pension fund purchased the property last year from AREA Property Partners for $240 million, according to Bloomberg. The office building is 97 percent leased to money manager BlackRock Inc. The lease expires in 2023.
The property is part of a four-building complex at Howard and First streets and is adjacent to the Transbay Transit Center, which is slated for completion in 2017.
“Foundry Square is a beautiful asset providing key access to the upcoming multi-billion dollar Transbay Transit Center, which some are already calling the 'Grand Central Station of the West,' ” says Brandon Buza, director at Northwestern Mutual Real Estate Investments LLC. “This investment demonstrates our commitment to expanding our presence along the West Coast.”
Milwaukee-based Northwestern Mutual Real Estate Investments LLC is the wholly owned subsidiary of Northwestern Mutual and manages Northwestern Mutual's real estate portfolio.
The company is one of the largest real estate investors in the nation with investments in commercial mortgages and equity investments across all major property types, including apartments, office, retail and industrial. The $30 billion to $35 billion real estate investment portfolio is comprised of 85 percent fixed-income and 15 percent equity investments.