LOS ANGELES, CA – The Los Angeles and San Francisco offices of HFF (Holliday Fenoglio Fowler, L.P.) announced today that they arranged a $43.37 million bridge loan for the Rialto Building, (above photo) a 140,000-square-foot historic office building in downtown San Francisco, California.HFF managing director Larry Wilemon (top right photo) and director Zane Sweet (HFF San Francisco) worked on behalf of Steven Firtel, corporate counsel and director of development for Bomel Companies, to secure the loan through GE Real Estate.
Loan proceeds will retire existing debt, pay off an unsecured note, fund tenant improvements, leasing costs and capital expenditures, and return equity to the borrowers upon stabilization as ownership seeks a long-term hold and operation of this historic property.
“We are thrilled to be able to secure the financing required by Bomel and our partners on this propert
y, which will enable us to implement a long-term leasing and capital improvements plan on the Rialto,” said Firtel.
y, which will enable us to implement a long-term leasing and capital improvements plan on the Rialto,” said Firtel. “The entire team we worked with at HFF was diligent, knowledgeable, responsive as well as effective and most importantly successful in obtaining key required elements associated with this transaction.”
Originally completed in 1902, the Rialto Building has eight stories of office space situated above ground floor and mezzanine retail space. The property is 88% occupied by tenants including Trust for Public Land, Walgreens and Chipotle Grill. The Rialto Building is located at 116 New Montgomery Street in the south financial district submarket of San Francisco.
“The Rialto Building is a tremendous value-add opportunity due to a majority of the leases being below market and expiring within the next 6-to-36 months,” Wilemon s
aid. “In a market that has seen rents increase from $24 per square foot to roughly $40 per square foot for Class B office space, this is a perfect time for the current owners to reposition the building and raise rents to market levels.”
aid. “In a market that has seen rents increase from $24 per square foot to roughly $40 per square foot for Class B office space, this is a perfect time for the current owners to reposition the building and raise rents to market levels.” Bomel Companies is an opportunistic development firm specializing in urban infill projects, with active or recent projects in San Francisco, Los Angeles, Culver City, Miami, New York, Kauai, Las Vegas and Israel. Bomel’s focus is on multifamily, retail and mixed-use urban infill projects predominately wi
thin key markets in the Western U.S. where there is an opportunity to add value and generate positive cash flow long-term.
thin key markets in the Western U.S. where there is an opportunity to add value and generate positive cash flow long-term. CONTACTS:
Larry Wilemon, HFF Managing Director, 310 407 2100, lwilemon@hfflp.com
Laurie Fish McDowell, HFF Associate Director, Marketing, 617 339 0990, lmcdowell@hfflp.com
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