Square Mile Capital Provides $145M Construction Loan for Menlo Park Office Development
MENLO PARK, CALIF. — Square Mile Capital Management LLC has provided a $145 million construction loan for the development of the first phase of Menlo Gateway, a 16-acre, master-planned project in the Menlo Park area of Silicon Valley.
Located on Independence Drive near the Marsh Road exit of U.S. Route 101, the development will consist of approximately 705,000 square feet of office space across three eight-story buildings. The 16-acre parcel, located roughly two miles from Facebook’s headquarters, was previously zoned for industrial use.
The Marriott Autograph Collection Hotel, a 250-room hotel currently under construction, will also reside on the land. The 11-story hotel offers a pool with cabanas and poolside bar, a spa, a lobby restaurant and coffee market, as well as 20,000 square feet of indoor and outdoor meeting space. Delivery is slated for late 2017.
The Bohannon Development Co., which is based in northern California, is serving as the project developer. San Francisco-based Heller Manus Architects designed the project.
Phase I of Menlo Gateway will include an eight-story, approximately 210,000-square-foot building located at 100 Independence Drive, as well as a 1,040-space parking deck. Phase I also includes delivery of The Bay Club, a 41,000-square foot fitness center with a sauna and cafe. Completion of all buildings is scheduled for late summer/early fall 2017.
Phase II will deliver two eight-story buildings totaling 500,000 square feet of office space, to be located at 101 and 150 Constitution Drive. Both buildings will feature large collaborative workspaces and offer green initiatives that promote efficient use of air, water and lighting. The developer plans to pursue Gold LEED certification. AS timetable for delivery of Phase II has not yet been established.
John Kerslake and Briana Smith of Northmarq Capital, a Minneapolis-based mortgage banking firm, arranged the financing for this transaction.
“The Bohannon Cos. have been at the forefront of real estate development in Silicon Valley for over 80 years,” says Michael Mestel, principal of Square Mile Capital Management. “We are excited to provide financing for the creation of an iconic building in an irreplaceable location.”
— Taylor Williams