PCCP Provides Senior Loan to Finance the Acquisition of Three Bank-Owned Class A Office Buildings in Petaluma, Calif.

SAN FRANCISCO, CALIF., July 18, 2011 - PCCP, LLC provided a  senior participating loan to Basin Street Properties to finance the REO acquisition of Sequoia Center, a three-building Class A office property totaling 210,000 square feet. The buildings are located within the desirable Redwood Business Park, a 1.1 million square-foot master-planned business park in Petaluma, Calif.  Sequoia Center was vacant at the close of escrow, however a 96,000-square-foot lease has been signed with Enphase Energy which will bring the occupancy up to 46 percent by the end of 2011. The property includes a three-story building built in 1998 located at 1400 North McDowell Blvd., a three-story building built in 2000 located at 1420 North McDowell Blvd., and a four-story building built in 1999 located at 5341 Old Redwood Hwy.

 “PCCP sees this as a solid loan to a very reputable borrower that has a successful track record in this market. Basin Street has built more than two million square feet of commercial real estate in Petaluma dating back to the 1970s, including Redwood Business Park,” said Jim Galovan, vice president of PCCP, LLC.

Basin Street originally built and then sold Sequoia Center in 2005 for over $200 per square foot.  It went into receivership in April, 2011. PCCP, LLC and Basin Street worked closely with the special servicer, CW Capital, to complete the detailed financing transaction at a fraction of its prior basis and well below replacement cost.  

Sequoia Center has a suburban, corporate, campus-style design. The buildings surround a pond and water feature with mature trees, walking paths, benches and abundant parking. The property was originally a build-to-suit for Alcatel before they vacated the building in the late 2000s. According to Galovan, Enphase was attracted to the property because of its strong, central location and because it has the infrastructure to support their high-tech use requirements. They were also attracted to the corporate campus setting and to Basin Street as a landlord.