San Francisco, CA – May 22, 2019
Highland Realty Capital successfully capitalized the privately-owned Walnut Creek Transit Village Bay Area Rapid Transit (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, which will contain 596 luxury apartment units and 21,950 square feet of ground-floor retail. The mixed-use project will be 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 portion with an $8,000,000 initial funding. Proceeds were provided 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 mid-construction funding was fixed from the outset at 275 over the Treasury curve for the entire term, and the earnout permanent loan will be fixed at the time of conversion for the remaining term, at the same spread, and will be non-recourse.