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Veritas closes record $815m refinancing – exclusive

The investor and operator put together financing for a combination of multifamily, retail and mixed-use properties in San Francisco.

Veritas Investments has closed a record $815 million refinancing of a San Francisco multifamily portfolio, PERE has learned.

The San Francisco-based real estate investor and operator put together the refinancing for a combination of multifamily, retail and mixed-use properties in the US city.

Veritas acquired the San Francisco properties between 2011 and 2012 from multiple sellers. Some of the assets have ground-floor retail, including a 54-unit property at 950 Franklin Street that has a deli and other stores on the first floor, and another 24-unit property at 210 Church Street with a florist and restaurant.

Co-investors in the portfolio include private institutions and domestic and offshore groups.

“I am proud of our team’s dedication, creativity and collaborative approach towards improving existing urban infill properties in order to create communities that delight our residents,” said Yat-Pang Au, Veritas’ chief executive officer.

Veritas is betting that San Francisco property prices continue their rise over the long-term in a market that has recently experienced sky-high occupancy rates. In the fourth quarter of 2015, San Francisco’s apartment vacancy rate was just 4.5 percent, according to real estate data provider Real Capital Analytics, with one of the highest percentages of renters in the country.

Last month, the firm announced it purchased a 16-property multifamily portfolio with Ivanhoé Cambridge, the real estate arm of Canadian pension Caisse de dépôt et placement du Québec, for $200 million. The partners started buying assets in the San Francisco area in 2014 and now own 45 properties, according to a statement.

“The San Francisco Bay Area’s ecosystem of technology and innovation companies, its university and education centers and its quality of life create a strong magnet for today’s mobile workforce, which is ultimately our resident base,” said Pang.

Goldman Sachs provided the financing and Eastdil Secured was the advisor for the transaction.