MetroGroup Realty Finance has secured a $35.7m loan on behalf of Oakmont Corporation for the acquisition of the Broadcom Building in San Jose, California.
Wells Fargo provided the fixed rate, securitized loan, which carries a 10-year term, 5 years of interest-only payments and a 30-year amortization, Real Estate Capital has learned. The loan-to-value based on the $55m acquisition price is 65%.
The 200,000 sq ft building at 3151 Zanker Road, just outside of Silicon Valley’s tech epicenter, is fully occupied by Broadcom Corporation. The asset encompasses research and development, data center, and corporate offices.
“The technology sector is driving commercial property demand forward at a tremendous rate today, making this investment extremely well-timed for our client,” said Patrick Ward, founder of MetroGroup. “With continued demand from the large population of millennials and tech firms in the region, we anticipate that this investment will be a sound, stable [one] for our client over time.”
Broadcom is a Fortune 500 tech company and leader in semiconductor solutions for wired and wireless communications.
Founded in 1983, Newport Beach, California-based MetroGroup specializes in providing capital advisory and mortgage banking services throughout Southern California.