By Jon Peterson
TH Real Estate, an affiliate asset manager of Nuveen, has provided debt for some significant debt transactions in both the San Francisco Bay Area and Seattle.
The lender has written a $125 million junior mezzanine loan for the Millennium Portfolio. Two of the 10 properties that the debt is covering are based in the downtown San Francisco. One of them is a retail condo building which is the Four Seasons Hotel at Market and 3rd Street. There is a retail and condo building located at 735 Market Street.
The loan covers a portfolio of 10 assets totaling 1.2 million square feet that are well-occupied retail and office properties in San Francisco, New York, Miami and Washington, D.C.
TH also has provided financing on a portfolio of 18 100 percent leased biomedical office buildings in eight markets. One of the properties is located in Fremont located at 34970 Ardentech Court, and it totals 55,588 square feet. There are two assets in Seattle are the 99,360 square foot 530 Fairview Avenue and the 124,418 square foot 500 Fairview Avenue North. Other assets in the portfolio are located in markets including Denver and San Diego.
All of these properties are owned by San Diego-based BioMed Realty. This company had been a public REIT until it was acquired by Blackstone Real Estate Partners VIII in January of 2016 for $8 billion.
This loan provided was part of a joint venture with TIAA’s General Account and the Korean Teachers’ Union, which was represented by Meritz Real Estate Asset Management.
TH Real Estate thinks there has been a change as to how institutional investors are looking at real estate debt. “The sector used to be more of a niche play but now an allocation to CRE debt is more frequently part of institution investor’s fundamental line-up of income strategies,” said Jack Gray, TH Real Estate’s global head of debt.