The Swig Co. received $145M in construction financing for its renovation and expansion at 633 Folsom. HFF secured the financing through a domestic bank. The loan will go toward the full-building renovation and expansion, which will add five floors and upgrade the property into a 12-story, 266K SF Class-A office.
The building was built in 1967 by The Swig Co. and has been fully leased for the last 20 years. California Pacific Medical Center will vacate the building when its lease ends in April.
Construction on the renovation project is expected to begin in the summer. Five stories will be added to the seven-story building, adding 94K SF and bringing the building to 165 feet. The building is expected to deliver in 2020.
The HFF debt placement team representing The Swig Co. consisted of HFF Senior Managing Director Bruce Ganong and analyst Bercut Smith.
Ganong said in a statement that the repositioning coincides with a shift in leasing patterns from traditional tenants looking for 5K SF to 10K SF to large users establishing new headquarters or satellite campuses in the central business district.