CBRE Capital Markets’ Debt & Structured Finance team has secured a $140 million loan for the land acquisition of a 48.6-acre, nine-parcel development site located at 3005 Democracy Way in Santa Clara, California.
CBRE arranged the short-term, non-recourse, floating-rate, bridge financing at a competitive rate with full-term interest-only on behalf of LeEco, a Chinese-based internet technology firm. The financing was provided by Mesa West Capital and Hudson Pacific Properties.
Brad Zampa, Michael Walker and Megan Woodring of CBRE’s downtown San Francisco office arranged the financing on behalf of the borrower.
“Through an accelerated and targeted marketing process, multiple capital sources aggressively pursued the financing of LeEco’s land acquisition, as they realized the exceptional opportunity to be partnered with such a dynamic and fast growing company,” said Mr. Zampa, Executive Vice President, CBRE Capital Markets.
LeEco purchased the fully-entitled development site from Yahoo!, Inc for $250 million with the right to develop a 3.0-million-square-foot office/R&D/Commercial campus. Located in the heart of Silicon Valley’s prestigious “Golden Triangle,” LeEco plans to develop the campus in stages and establish it as their worldwide headquarters, accommodating more than 12,000 employees.
LeEco is a leading global internet technology company that converges culture, content, innovation, lifestyle and entertainment with an innovative array of products and experiences that fit perfectly into a broad spectrum of lifestyles. LeEco opens new opportunities for consumers and the technology and entertainment industries with an integrated ecosystem that spans smartphones, televisions, transportation, sports, film, entertainment and more. LeEco has already started to establish a presence in Silicon Valley as they recently leased 80,000 square feet in San Jose to use as their temporary domestic headquarters until their campus in Santa Clara is open. The property’s central location within Silicon Valley will position LeEco well to capture the exceptional talent located in the area.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.
