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.

IPA Capital Markets Secures $61 Million Financing for Arbello Mixed-Use Development in San Mateo, California

IPA Capital Markets has successfully obtained $61 million in financing intended for the construction of the Arbello mixed-use development in San Mateo, California. This project, situated at 477 9th Avenue, will comprise both residential and office spaces, contributing to the region’s economic landscape.

The Arbello development is set to be a five-story building that will include 120 for-rent apartments alongside approximately 29,000 square feet of office space. This combination of residential and commercial areas aims to promote a vibrant community atmosphere.

Ample Amenities for Residents and Tenants

Future residents and tenants of Arbello will benefit from a range of onsite amenities designed to enhance their living and working experiences. Highlights include:

  • A coworking space for professionals seeking a productive environment.
  • A wellness center focused on promoting health and well-being.
  • A clubhouse for community gatherings and events.
  • An expansive courtyard for relaxation and social interaction.
  • A rooftop deck offering scenic views and leisure opportunities.

Market Challenges and Successes

Brandon Roth, managing director of IPA Capital Markets’ Palo Alto office, mentioned the current challenges in the Bay Area’s financing environment for developers. Despite these challenges, The Martin Group has shown resilience by successfully securing financing and initiating construction on two separate projects within the last six months. This accomplishment underscores their reputation for delivering quality developments in prime locations.

IPA Capital Markets played a crucial role in creating a competitive landscape for financing by gathering construction financing quotes from six different lenders. This competitive approach enabled them to secure favorable financing terms for the Arbello project.

About IPA Capital Markets and Marcus & Millichap

IPA Capital Markets is a division of Marcus & Millichap, a publicly traded company specializing in a broad range of commercial real estate services. As of December 31, 2023, Marcus & Millichap had a robust network of 1,783 investment sales and financing professionals across more than 80 offices nationwide. The firm has reported an impressive transaction volume, closing 7,546 transactions in 2023, amounting to approximately $43.6 billion in total sales.

Marcus & Millichap focuses on investment sales, financing, research, and advisory services, with IPA Capital Markets specializing in providing diverse financing solutions in the commercial real estate capital markets. These include debt, mezzanine financing, preferred and joint venture equity, and sponsor equity, positioning them as leaders in their field.

The Martin Group’s Development Credentials

Established in the industry, The Martin Group has developed and acquired over 24 million square feet of real estate since its inception. Their focus has been primarily on residential and mixed-use properties located in regions with high demand, which aligns with current market needs.

As Arbello moves forward, the combination of residential and commercial spaces, coupled with its strategic location and well-planned amenities, is anticipated to draw significant interest from both residents and businesses alike. The successful attainment of financing during a time when many developers are facing hurdles is a testament to the potential and vision behind this impactful development.

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