Republic Urban Properties has scored a $125 million commercial mortgage-backed securities loan to refinance an apartment complex in its Gateway at Millbrae Station development.
The firm scored the financing from Argentic Real Estate Investment, which then packaged the debt into a CMBS deal, according to a report from credit agency Fitch Ratings.
Republic Urban completed the 320-unit complex in 2023, according to Fitch. All in, the Gateway at Millbrae development includes 151,600 square feet of office space and 44,000 square feet of retail, the apartment complex called Station 16, plus a hotel.
The development also sits next to a BART train station, which runs to San Francisco and Silicon Valley.
Republic Urban acquired the property at 126 North Rollins Road through a 99-year ground lease with BART that started last year. Under the lease, Republic Urban pays about $801,000 starting in the third year, with 1.5 percent annual ground rent increases, according to Fitch.
On the loan from Argentic, which will mature in May 2029, Republic Urban is paying a fixed interest rate of 8.56 percent. Republic Urban did not respond to a request for comment.
As of December, the property was 57.5 percent leased, the Fitch report said, though Republic Urban’s plan is to have the property 95 percent filled by the first quarter of 2025.
The property is not cash flowing yet — at the end of 2023, the property reported a net operating loss of $1.8 million, according to Fitch.