Financing Secured for Mixed-Use Development in San Mateo

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 Mixed-Use Development in San Mateo

Institutional Property Advisors (IPA) has completed arrangements for 61 million dollars in financing aimed at the construction of Arbello, a new mixed-use multifamily and office property in San Mateo, California. The project, located at 477 9th Avenue, is set to feature five stories that will include 120 for-rent apartments along with approximately 29,000 square feet of office space.

Features and Amenities of Arbello

Arbello is designed with an array of onsite amenities that will cater to both residents and office tenants. These amenities will consist of a coworking space, a welleness center, a clubhouse, an expansive courtyard, and a rooftop deck. These features aim to create a vibrant community atmosphere, promoting both work and relaxation.

Developer’s Track Record in Current Market

IPA’s involvement comes at a time when securing construction financing has become a challenge for many developers in the Bay Area. Brandon Roth, managing director in IPA Capital Markets’ Palo Alto office, indicated that few have been able to secure the necessary funding and initiate construction within the current market climate. Notably, The Martin Group has successfully secured financing and kicked off two construction projects within the last six months, highlighting their ability to deliver quality developments in prime locations.

Competitive Financing Landscape

IPA was able to create a competitive environment for financing options by securing quotes from six different lenders. This strategic approach not only helps in the financing arrangement but also showcases the potential of the Arbello project in attracting investment.

Background on Marcus & Millichap

Marcus & Millichap, the parent company of IPA, is publicly traded under the ticker MMI on the NYSE. The firm specializes in commercial real estate investment sales, financing, research, and advisory services. As of December 31, 2023, it boasts a workforce of 1,783 investment sales and financing professionals across more than 80 offices. The company has demonstrated robust activity in the market, closing 7,546 transactions in 2023, contributing to an approximate sales volume of 43.6 billion dollars.

About The Martin Group

The Martin Group focuses on residential and mixed-use properties in demand-driven markets. Since its founding, the group has developed and acquired over 24 million square feet of property, emphasizing quality and strategic locations as key components of its successful portfolio.

The Future of Arbello

As the Arbor project moves into its next phases of development, the successful acquisition of financing not only indicates the project’s viability but also reflects confidence in the residential and office market in San Mateo. The combination of thoughtfully designed living spaces alongside modern office amenities places Arbello in a strong position to attract future residents and businesses alike.

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Additional Resources

• Rebusiness Online
• Business Wire
• Yield Pro: Rents Rise in June but Slowly
• BDT Online
• Yield Pro: JRK Property Holdings