914-Stall Parking Garage
Walnut Creek, CA
Highland has successfully capitalized the privately-owned Walnut Creek Transit Village BART Parking Garage, a 914-stall five-story structured commuter parking garage development located at the Walnut Creek BART station. The leasehold Property is being built as the first phase of a fully-entitled multi-phase transit village. The transit village will contain 596 luxury apartment units and 21,950 square feet of ground-floor retail, developed in two additional phases following the garage completion.
Construction of the garage commenced in the fall of 2018 which was funded with cash by a subsidy provided by the transit agency. On behalf of the Sponsor, a prolific Bay Area developer, Highland arranged the 10-year mid-construction/permanent loan for the Sponsor’s obligated portion, with an $8,000,000 initial funding. Proceeds were used to complete the construction and stabilize the project. Upon stabilization of the garage and specific NOI hurdles, the loan was structured to provide up to a $4,000,000 earn-out to the sponsor, based on stabilized operations. So the $12,000,000 total loan facility provides significant cash-out to the Sponsor. The initial funding was fixed at 275 over the Treasury curve for the entire term, and the earnout permanent loan was fixed at the time of conversion for the remaining term, at the same spread, and will be non-recourse.