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Allianz & Barings Provide USD319m in Debt Financing to Support the Acquisition of 650 Townsend in San Francisco

Jul 02, 2019

Allianz Real Estate, ranked as the world’s largest real estate investor, and Barings, one of the world’s leading financial services firms, on behalf of an institutional investor, announced today that they have co-committed in total USD319.1 million (EUR282 million) in debt financing under a co-lending agreement to fund the acquisition of 650 Townsend, a premier creative office building in San Francisco. The asset is being acquired through a sale-leaseback arrangement with the major tenant. Barings will be the lead lender and administrative agent for the transaction, with Allianz co-investing on a pari passu basis.

“The debt financing of 650 Townsend demonstrates Barings’ ability to identify attractive debt investment opportunities across all property sectors and reflects our confidence in the long-term growth of San Francisco, especially as new development opportunities remain limited,” said Dan Hartley, Head of Real Estate Debt Origination in the U.S. at Barings. “We are excited to partner with Allianz on this transaction and showcase Barings’ ability to provide creative financing solutions to strong sponsors that own high quality real estate.”

650 Townsend is located at the crossroads of San Francisco’s SOMA and Showplace Square Districts. The six-story property features 685,000 square feet of flexible office space, multiple atriums and unrivalled tenant amenities including two onsite cafeterias, a basketball court, gym, a theatre, on-site retail facilities and numerous collaborate workspaces.

Built in 1990, the building was renovated in 2011 and 2018 and was awarded LEED Gold status in 2017. It is currently leased to a strong line-up of tenants anchored by high-profile technology firms. The asset has benefitted from significant capital investment, with over USD115 million in work completed or in progress since 2012.

“We are delighted to announce this latest transaction, a compelling opportunity to expand into the highly attractive San Francisco office market, which has grown significantly in recent years as a result primarily of the booming technology sector,” said Christoph Donner, CEO, Allianz Real Estate of America. “650 Townsend is one of San Francisco’s most distinctive office properties in a vibrant, 24/7, ‘Live, Work, Play’ environment that attracts and retains employers and professionals alike. This new transaction also enables us to deepen our existing relationships with prime partners such as CalSTRS, Beacon Capital Partners and another institutional investor.”

Media Contact

 

Kelly Smith
Global Media Relations
300 South Tryon Street 
Charlotte, NC 28202 
(Tel.) 980-417-5648
kelly.smith@barings.com

 

Rachel White
US Media Relations
300 South Tryon Street 
Charlotte, NC 28202 
980-417-5886
Rachel.white@barings.com

 

Melanie Hunt
EMEA Media Relations
20 Old Bailey
London EC4M 7BF  United Kingdom
+442072141551
Melanie.hunt@barings.com

 

Florence Chan
APAC Media Relations
35th Floor, Gloucester Tower
15 Queen's Road Central
Hong Kong, Central
+85229733439
Florence.Chan@barings.com

 

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