SAN FRANCISCO & NEW YORK–(BUSINESS WIRE)–Madison Capital, a New York-based leading real estate investment firm and Taconic Capital Advisors LP (“Taconic”), a global institutional investment firm, today announced that they have provided $40 million in financing for the acquisition of 180 Howard Street in San Francisco’s South Financial District.
180 Howard Street is a 13-story, 211,000 square foot office building centrally located along the Spear Street Corridor and steps from the Transbay Termination, Ferry Building, and Embarcadero waterfront. The State Bar of California, which formerly owned the property, has committed significant capital to enhance the building over the past four years and has signed a long-term lease for a portion of the building commensurate with the transaction.
Jonathan Nachmani, Managing Director at Madison Capital, said, “We’re thrilled to work with Taconic on this opportunity. As property values begin to adjust in the Bay Area, we believe it’s an opportune time to invest across the capital stack. Our team remains focused on identifying transit-oriented assets with strong cash flows, and dynamic locations that can draw and retain San Francisco’s creative, and talented workforce.”
Andrew Lam, Director in Taconic Capital Advisors’ Commercial Real Estate Group, said, “This financing reinforces the pragmatic, relative-value mindset we have towards private real estate lending. Despite economic challenges that the City of San Francisco is grappling with, 180 Howard Street’s strong credit metrics coupled with a sound, fully-capitalized business plan, made our position in the capitalization very compelling. Our efficiency and ability to close the financing in a compressed timeframe is a testament to our collaborative efforts with the experienced team at Madison Capital.”
The transaction signifies Madison Capital and Taconic Capital’s strategic approach to real estate investment, focusing on opportunities that present value and stability in today’s dynamic real estate market. The financing reflects a commitment to delivering results and seizing opportunities that align with their investment strategies.
About Madison Capital
Madison Capital is a leading real estate investment and operating company focused on creating exceptional opportunities in innovation markets. Since its inception in 2002 and currently with over $3.2 billion in assets under management, Madison invests with an institutional perspective and entrepreneurial execution. Led by data analytics and sound fundamentals, Madison targets opportunistic and income-producing investments in New York, San Francisco, Chicago and other innovation markets. For more information, please visit the firm’s website at www.mcapny.com.
About Taconic Capital Advisors
Taconic Capital Advisors is a global institutional investment firm that pursues an event-driven, multi-strategy investment approach designed to generate strong, risk-adjusted returns over multiple market cycles. Taconic was founded in 1999 by former Goldman Sachs partners Frank Brosens and Ken Brody. The firm has approximately $7 billion of total assets under management with offices in New York and London and more than 100 employees worldwide.
Taconic’s full-service commercial real estate platform invests in all asset classes and across the capital structure in both public and private markets. The strategy’s broad mandate offers flexibility to capitalize on shifting market opportunities, creating uncorrelated risk-adjusted return profiles for investors. Rooted in distressed and opportunistic investing, the team applies high-touch asset management capabilities to drive strong asset-level performance and capital market executions. Well-established relationships drive Taconic’s differentiated and diverse transaction sourcing channels which include local operating partners, investor partners and a broad network of lenders, CMBS special servicers, trading desks and brokerage houses.
Taconic’s series of closed-ended real estate funds are fully discretionary and have received over $1 billion in capital commitments. Investments to date across all Taconic funds total over $3 billion of gross asset value across roughly 175 distinct transactions. For more information, please visit www.taconiccapital.com.
Managing Director, Head of Acquisitions
Prosek Partners (on behalf of Taconic Capital Advisors)