News Summary
Institutional Property Advisors has secured $61 million in financing for the Arbello project in San Mateo, California. This mixed-use development will feature 120 rental apartments and about 29,000 square feet of office space. Planned amenities include a coworking space, wellness center, clubhouse, courtyard, and rooftop deck. The project reflects confidence in the San Mateo market amid construction financing challenges, highlighting the developer’s successful track record in creating quality developments.
Financing Secured for Arbello Mixed-Use Project in San Mateo
In a significant development for the San Mateo area, Institutional Property Advisors (IPA) has successfully secured $61 million in financing for the construction of the Arbello mixed-use development. Located at 477 9th Avenue, this project is set to encompass both residential and commercial spaces to cater to the needs of the community.
Details of the Arbello Development
The Arbello project will rise to a height of five stories. It will feature a total of 120 for-rent apartments, providing much-needed housing in the bustling Bay Area. Additionally, the property will host approximately 29,000 square feet of office space, contributing to the area’s economic ecosystem.
Amenities and Features
Arbello aims to create a community-centric environment, with various onsite amenities designed to enhance the quality of life for both residents and office tenants. These amenities will include:
- A dedicated coworking space for professionals looking for flexible working options.
- A comprehensive wellness center promoting health and well-being.
- A vibrant clubhouse designed for social gatherings and community events.
- An expansive courtyard that will serve as an outdoor gathering and relaxation space.
- A stunning rooftop deck that will offer views of the surrounding area.
Insights into the Financing Process
This recent financing pursuit was managed by Brandon Roth, who works as the managing director at IPA Capital Markets’ Palo Alto office. Roth successfully advised and marketed the financing for the Arbello project. Notably, the financing was arranged on behalf of The Martin Group and JPF Capital.
In today’s challenging market environment, where many developers in the Bay Area have struggled to secure financing and initiate construction, the achievement of financing for Arbello is a remarkable feat. The Martin Group has previously showcased its capability by securing financing and commencing construction two times within the last six months, indicating their recognition of market demands and quality project execution.
Competitive Financing Landscape
IPA efficiently created a competitive environment for securing financing, managing to obtain financing quotes from six different lenders. This competitive edge likely played a crucial role in successfully funding the Arbello project.
About Marcus & Millichap
Marcus & Millichap, the parent company of IPA Capital Markets, is noted for its specialization in commercial real estate investment sales, financing, research, and advisory services. As of December 31, 2023, the company reportedly employed 1,783 investment sales and financing professionals across over 80 offices nationwide.
In total, Marcus & Millichap closed an impressive 7,546 transactions in 2023, amounting to an approximate sales volume of $43.6 billion. Their expertise extends to a variety of financing solutions in the real estate capital markets, including debt, mezzanine financing, and joint venture equity.
The Martin Group’s Experience
The Martin Group has developed and acquired more than 24 million square feet of properties since its inception. With a focus on residential and mixed-use projects, the group has established itself in demand-driven markets, ensuring that its developments align with the needs of communities.
The Arbello project represents a significant investment in the future of San Mateo, promising to provide essential housing and workspaces while enhancing the local community’s vibrancy. With initial financing successfully secured, construction is set to begin, and stakeholders are optimistic about the project’s potential impact.
Deeper Dive: News & Info About This Topic
Additional Resources
- Rebusiness Online
- Business Wire
- Yield Pro: Rents Rise in June but Slowly
- BDT Online
- Yield Pro: JRK Property Holdings
