Funding Secured for New Development in San Mateo, California

News Summary

IPA Capital Markets has secured $61 million in financing for Arbello, a new mixed-use development in San Mateo, California. This project will feature 120 residential rental units and 29,000 square feet of office space. With various amenities like a coworking space and wellness center, Arbello aims to address the growing demand for housing and workspaces in the area, contributing significantly to the local economy.

IPA Capital Markets Secures $61 Million for Arbello Mixed-Use Development

IPA Capital Markets has successfully secured $61 million in financing aimed at the construction of a new mixed-use development named Arbello, located in San Mateo, California. The funding marks a significant step toward the realization of a project that is set to reshape the local landscape by combining both residential and commercial spaces.

Details of the Arbello Development

Arbello will be situated at 477 9th Avenue and will be built as a five-story structure. The development will consist of 120 residential rental units, offering much-needed housing in the area. Alongside these residential units, the project will also feature approximately 29,000 square feet of office space, catering to businesses and creating a vibrant mixed-use environment.

Amenities for Future Residents

The planned amenities for the residents of Arbello exhibit a focus on modern living and community engagement. Among these amenities are:

  • A coworking space to facilitate remote work and collaboration
  • A wellness center to promote health and fitness among residents
  • A clubhouse for social gatherings and events
  • An expansive courtyard providing outdoor leisure space
  • A rooftop deck offering scenic views and relaxation

Financial Details and Project Background

The financing for Arbello was facilitated on behalf of The Martin Group and JPF Capital, reflecting a strong partnership with experienced developers. Brandon Roth, who is the managing director in IPA Capital Markets’ Palo Alto office, played a crucial role in advising and marketing this financing. The Martin Group’s track record was underscored by their successful acquisition of financing and commencement of construction on two projects within the last six months.

Competitive Financing Landscape

To ensure favorable financing conditions, six lenders were approached to create a competitive environment for the Arbello project. This strategic move aimed to not only secure the required funds but also ensure that the development could commence seamlessly, given the demand for such mixed-use properties in the San Mateo area.

Focus on Supply-Constrained Markets

The Martin Group, which is headquartered in Oakland, California, has specialized in developing residential and mixed-use properties, particularly in supply-constrained markets. The company has demonstrated its capability with over 24 million square feet developed since its inception, solidifying its status as a key player in the real estate industry.

About IPA Capital Markets and Marcus & Millichap

IPA Capital Markets is known for offering commercial real estate capital market solutions, which encompass both debt and equity financing. This transaction represents a notable contribution to their portfolio. Marcus & Millichap, the parent company, is recognized as a leading brokerage firm in commercial real estate investment sales, financing, and advisory services, further enhancing the credibility of the Arbello development.

Conclusion

As construction moves forward with the backing of significant financing, Arbello is poised to become a valuable addition to San Mateo, merging residential comfort with office convenience. This project reflects both the needs of a growing population and the strategic foresight of its developers. With modern amenities and a focus on community, Arbello is anticipated to be an attractive destination for residents and businesses alike.

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