Northwestern Mutual has provided Rockwood Capital with a $40m loan for the refinancing of The Gantry, a residential rental building in San Francisco, California, Real Estate Capital has learned.
The seven-year, interest-only loan refinances a previous construction loan on the newly built property. The five-story, 105-unit building at 2121 Third Street is located in San Francisco’s Dogpatch neighborhood, a rapidly gentrifying area where swaths of former industrial sites have been converted into restaurants, shops and offices.
“The Gantry is located in one of the newest and hottest markets in San Francisco,” said Jesse Weber, a senior vice president with CBRE Capital Markets’ Debt & Structured Finance team, who arranged the deal out of the firm’s San Francisco offices with Andrew Behrens.
“Rockwood was able to secure favorable financing terms because of the superior quality of the property and its high demand location. There was a significant amount of interest from all types of lenders, but Northwestern Mutual was able to provide the best total financing offer.”
The Gantry consists of 87 market rate and 18 affordable units, with amenities including a rooftop lounge with a fire pit, barbeque area and views of downtown San Francisco Bay area.
San Francisco’s rents have risen 12.9% in the past year, leading the country with a median price of $3,500 per year for a one-bedroom apartment, according to a report from Zumper. July rents for the Dogpatch/Mission Bay area stood at $3,780, the fourth highest among all San Francisco neighborhoods.
Meanwhile, home sales in the Dogpatch neighborhood alone jumped 22.2% year-over-year; and from April to June 2015, the neighborhood experienced the most home sales in all of San Francisco, with a median price of $1.5m per household, according to CBRE.