FOR IMMEDIATE RELEASE
Contact: Lauren Smith / Jessica Neuman
IDEA HALL
(714) 436-0855 ext. 23 / 31
lauren@ideahall.com / jessica@ideahall.com

 

BUCHANAN STREET PARTNERS SECURES $59.5 MILLION FOR RESIDENTIAL CONDO CONVERSION OF HISTORIC SAN FRANCISCO OFFICE BUILDING

 

"The Montgomery" offers excellent location for residential development

 

Newport Beach and San Francisco, CA (April 26, 2006) - Buchanan Street Partners, a national real estate investment bank, has arranged a $59.5 million combined bridge/construction and mezzanine loans to convert a former newspaper headquarters into residential condominiums. NEBF Real Estate funded $49.5 million of construction debt and a $10.0 million mezzanine loan. The property, sponsored by New Urban Properties, is located at 74 New Montgomery Street in San Francisco.

 

Once home to the pioneering San Francisco newspaper The Call, the historic structure-originally built in 1914 and listed on the San Francisco historical register-was acquired in 2001 as a Class "B" office building. New Urban Properties is currently converting that office space into 107 residential units, which will benefit from an outstanding Financial District location, adjacent to The Palace Hotel.

 

"This is a great story of a strong sponsor that has been very responsive to the opportunities emerging in this market," said John Manning, Buchanan Street Partners vice president. "Converting a Class 'B' historic building to residential condos in such a great location is a very smart move. Securing the funding had its challenges given the complexity of the deal and the changing construction costs, but NEBF came through in the end."

 

The project reflects a national trend of increased urban residential development and its popularity among cities looking to place residents closer to work and entertainment. In this case, the sponsors were able to procure unusually quick approval from the San Francisco Planning Department.

 

"A building like this, with so much character and history behind it, deserves renewed use," said Tom Owens, Chief Executive Officer of New Urban Properties. "There hasn't been residential living in this area since the 1906 earthquake and fire destroyed much of the city. It's been 100 years since then and we hope this restored classic is a sign that the next 100 years will reflect an exciting, 24/7 downtown for people to live and work in."

 

About Buchanan Street Partners…

Buchanan Street Partners is a real estate investment bank that provides real estate capital for owners and developers, and has closed more than $10.5 billion in real estate transactions since its inception, including $550 million in the first quarter of 2006. The firm makes principal equity investments for real estate in a discretionary capacity, arranges debt and structured finance, is an investment manager to institutional and private investors, offers investment sale brokerage services, and has a specialty in self-storage finance. Buchanan Street Partners operates from offices in Newport Beach, Los Angeles, San Francisco, Chicago and Atlanta.

 

About New Urban Properties…

San Francisco based New Urban Properties is a vertically integrated operating company focused on real estate investment opportunities in California. For more information on the company, call 415-397-5050.