SunTrust Bank and MUFG Union Bank have provided Sand Hill Property Company and equity partner The Carlyle Group with a $100m construction loan for the development of a Silicon Valley office campus anchored by Netflix.
Construction has commenced on The Grove development in Los Gatos, California, the first phase of which is to be delivered in May 2015 and will consist of two office buildings totaling 242,000 sq ft that have been pre-leased to the Internet streaming media giant. The 21-acre site comprised of three-and four-story buildings will ultimately house 485,000 sq ft of Class A office space.
John Nelson of CBRE, who arranged the financing on behalf of the borrower, said in a written statement that “everything came together on this project – a strong and experienced sponsorship, a well-known and high profile tenant, and a very desirable, high barrier to entry market in Silicon Valley.”
The borrower would not disclose loan terms or pricing information.