ING Real Estate Finance has provided a $148.6 million senior secured loan to finance the 328,024 square foot Sharon Green Apartments complex in Menlo Park in Silicon Valley, California.
The US subsidiary of the Dutch bank provided the floating rate loan to a joint venture between Maximus Real Estate Partners and Deutsche Asset Management. The loan is secured by a first mortgage on the apartment complex. The majority of the loan will fund the acquisition of the property, while the rest will go towards renovations over a three year period.
Craig Bender, managing director at ING Real Estate Finance, told Real Estate Capital that Deutsche Asset Management is a long-term client of the company but that this is the bank’s first transaction with Maximus, which invests in residential projects in the San Francisco and Silicon Valley markets.
“We’re targeting the major US gateway markets, so San Francisco and this particular sub-market obviously falls within that description,” said Bender. “We follow our clients into various markets and the San Francisco area proves to be a very healthy real estate market, with not a lot of supply and strong fundamentals.”
Maximus and Deutsche Asset Management acquired the 296-unit Sharon Green property in a joint acquisition from Essex Property Trust, a publicly traded REIT, in January. Sharon Green has been under single ownership since its completion in 1970.
Deutsche Asset Management declined to comment. Maximus did not respond to a request for comment in time for publication.