John Hancock lends $75m on SOMA office asset

John Hancock has provided a $75m loan to The Swig Company to refinance 501 Second Street, a seven-story office property in San Francisco’s SOMA (South of Market Street) submarket. HFF arranged the 10-year, fixed-rate loan on the 208,000 sq ft building.

John Hancock has provided a $75m loan to The Swig Company to refinance 501 Second Street, a seven-story office property in San Francisco’s SOMA (South of Market Street) submarket.

HFF arranged the 10-year, fixed-rate loan on the 208,000 sq ft building.

501
501 Second Street

The Swig Company purchased the property in October of 2005 for $56.6m, funding the acquisition with $42.7m in securitized debt linked to the Wachovia Bank Commercial Mortgage Trust, 2005-C22 CMBS offering, just one of hundreds-of-billions of securitized loans set to come due in the coming years.

The property is located at 2nd and Bryant Streets, three blocks from AT&T Park and in close proximity to the Central Subway project, to be completed in 2019.

The property, built in 1925, was renovated in 1985 and 2007. fully-leased to 17 tenants in technology, media, architecture, and venture capital, including anchor tenant International Data Group (IDG), a leading technology media publication company.

Connor Kidd, VP of investments for The Swig Company noted that the firm “[locked-in] a great loan at favorable interest rate for one of the company’s signature long-term assets” with the help of an HFF debt placement team led by senior managing director Bruce Ganong.

“Strong sponsorship combined with an institutional quality asset that enjoys stable cash flow and a diverse rent roll resulted in a very competitive response from life insurance companies and commercial banks,” Ganong said.

John Hancock’s Real Estate Finance Group (REFG) currently has loans outstanding in more than 40 states and 125 metropolitan areas, with more than $12.5bn in commercial mortgage assets under management.

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