Uber JV Lands $500M for San Francisco HQ
The partners paid down the property’s existing debt by $100 million before securing the new financing.
Alexandria Real Estate Equities, Uber Technologies and basketball team Golden State Warriors have secured a $500 million refinancing loan for two office buildings in San Francisco that serve as Uber’s headquarters. The trophy duo encompasses 586,208 square feet in the Mission Bay neighborhood.
Goldman Sachs and Barclays provided the five-year, fixed-rate, single-asset, single-borrower CMBS note in a deal arranged by CBRE. To secure the loan, the joint venture made a down payment of $100 million on the existing debt, a $600 million financing package originated by JPMorgan Chase & Co. in 2020, public records show. Wells Fargo served as trustee.
READ ALSO: San Francisco Office Construction Rebounds Amid High Vacancy
Uber and Warriors each have a 45 percent stake in the two office buildings, while Alexandria owns the remaining 10 percent. The duo is at 1655 and 1725 Third St., next to the Chase Center arena and about 3 miles south of downtown San Francisco.
Completed in 2021, the 11-story buildings feature 45,911-square-foot floorplates, as well as LEED Gold certifications. Amenities consist of a café, a smoothie bar, as well as landscaped roof decks, to name a few.
Rounding up Uber’s Mission Bay campus are the office assets at 1455 and 1515 Third St., which measure a combined 486,600 square feet and bring the property’s total square footage to 1 million. Uber subleased these buildings to OpenAI in 2023.
CBRE Executive Vice Presidents Brad Zampa and Michael L. Walker arranged the financing on behalf of the venture. According to the firm’s research, the non-agency loan closings for banks rose to 43 percent in December, up from the 18 percent registered in September.
San Francisco’s office market sees better days
San Francisco’s office scene sees signs of improvement. Although the market’s vacancy rate rose 240 basis points year-over-year, landing at 34.2 percent in December, the last quarter of 2024 marked the first three-month period of positive absorption recorded since 2019, according to a report by Cushman & Wakefield.
This shift toward 2024’s tail-end spurred lending revival in the metro. In January, a joint venture between Bain Capital Real Estate and Phase 3 Real Estate Partners Inc. obtained $484 million to refinance a three-building life science complex totaling 566,661 square feet in Brisbane, Calif.
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