offices

The roughly 670,000-sq-ft trophy office is about 90% leased.

The financing is notable given the paucity of capital allocated to the office sector as well as a decline in construction lending over the past year to 18 months.

The loan on One Market Plaza, a San Franciso office tower, was one of the largest CMBS loans slated to mature in 2024.

The Ares-RXR venture comes at a time when transaction activity in the city has started to tick upward and capital is starting to move.

Sustainable office properties are gaining favor with tenants, but financing the conversions remains difficult for small- and mid-market owners.

Reven Office REIT will originate first mortgages, mezzanine debt and preferred equity investments.

The $308m loan is expected to be sold for a 50% discount.

Hines and Urban Street Development will use the financing for the first phase of a multifamily, office and retail project.

The asset class remains difficult to finance but leasing and visitation levels are slowly rising.

The firm has an almost 95% occupancy rate in its office portfolio.