Chicago, IL (January 19, 2016) – Pearlmark announces the closing of a $17.3 million preferred equity investment in the development of a mixed-use project near Stanford University known as College Terrace Centre by Greystone and their joint venture partner, the Clara E. Chilcote Trust. The project is located at 2100 El Camino Real in Palo Alto and upon completion will consist of approximately 65,000 rentable square feet. The development is anchored with just over 45,000 square feet of 100% pre-leased office space to a credit tenant. The balance of the building will include roughly 13,000 square feet of street level retail, eight affordable housing units and 227 parking spaces. College Terrace Centre is expected to be delivered in late summer 2016.
The investment was originated by Pearlmark Real Estate and made on behalf of Pearlmark Mezzanine Realty Partners IV, L.P. (“Mezz Fund IV”) and a separate account. Construction financing was provided by J.P. Morgan Chase.
Bill Swackhamer, Managing Director of Pearlmark, arranged the transaction. Mr. Swackhamer commented, “We were highly motivated to invest in College Terrace Centre for numerous reasons, including strong sponsorship from Greystone, preleasing of the office component to a credit tenant, and the attractive real estate fundamentals that exist in Palo Alto.”
Head of Debt Investments for Pearlmark, Douglas W. Lyons, further commented, “We continue to find outstanding investment opportunities in the San Francisco/Bay Area markets and we are thrilled to be investing with Greystone and J.P. Morgan Chase on this transaction.”
Mezz Fund IV announced its initial closing in June 2015. Mezz Fund IV serves as the firm’s exclusive mezzanine investment vehicle, fulfilling borrower demand for mezzanine debt solutions for refinancings, recapitalizations, acquisitions, and selective development projects. Mezz Fund IV is targeting a broad range of domestic commercial real estate assets and will seek to generate a net internal rate of return of 10% to 12% to investors over a three- to five-year investment holding period. Pearlmark is targeting a fund size in excess of $300 million with a hard cap at $500 million.
Chicago-based Pearlmark is a private equity real estate investment firm that pursues domestic, value-added and core/core-plus strategies through institutional commingled investment vehicles and separate accounts. Since its inception in 1996, the firm has made more than 515 office, industrial, retail, multifamily, and mezzanine loan investments nationwide, representing a gross investment of over $12.5 billion. Pearlmark and its partners, including insurance companies, public and private pension funds, foundations and endowments, banks, corporations, and high net worth individuals and families, have committed over $4.6 billion of equity capital to the firm’s investment activities. The company currently employs approximately 30 professionals. For more information please visit www.pearlmark.com.