Pembrook Capital closes $7.5 million preferred equity financing for San Francisco office property

Pembrook Capital Management, LLC has closed a $7.5 million of preferred equity in a transaction that will help complete the repositioning of a 143,000 s/f office building in the Central Market neighborhood. Pembrook's investment bridges a gap in ownership's capital structure, which includes a mezzanine loan in addition to the first mortgage. Total capitalization of the property is $50 million. Within the past three years, the Central Market neighborhood has seen a significant resurgence. Large-scale residential and commercial development has come back to an area that was neglected for decades. Tech tenants such as Twitter, Square, ZenDesk, CallSocket, Yammer, Uber, Spotify, and One Kings Lane have located in the neighborhood. Located in the heart of this thriving area, 1155 Market St. is another part of the resurgence. A renovated lobby and entrance, with glass replacing granite for a modern look and better natural lighting, will grace the entry to the building. The developers are also adding a new façade for the first and second stories that will update the look of the building and boost its appeal and marketability. "We believe this property is well-positioned to benefit from the resurgence in the Central Market district," said Stuart Boesky, CEO of Pembrook. "The sponsors have already taken a major step toward stabilization of the property by leasing 72% of the space to the city and county of San Francisco. We are very pleased to have participated in the revival of this section of San Francisco with this financing."