Tech CU Financing Iconic Theatre Renovation
Making good on its mission to continue growing its commercial real estate portfolio this year, Technology Credit Union said it has funded a $4.5 million loan for the historic Fox Theatre building in downtown Redwood City, Calif.
The $1.7 billion credit union in San Jose, Calif., said this most recent loan was provided to Fox Theatre owners Eric and Lori Lochtefeld, who purchased the property out of foreclosure in 2010 with plans to renovate and bring it back to life by turning the theatre into a mixed-use property with 6,000 square feet of retail, 10,000 square feet of office, and 20,000 square feet of theater space for live performances and private events.
Listed on the National Register of Historic Places, the Fox Theatre opened in 1929 under the name, The New Sequoia Theater, as a place to show motion pictures, according to Tech CU. In 1950, it was renovated and reopened as a live performance venue.
Throughout its 85-year history, the theater has remained an iconic spot in the Bay Area, having recently hosted such key figures as President Obama, Supreme Court Justice Sonia Sotomayor, authors Caroline Kennedy and George R.R. Martin ("Game of Thrones"), singer/songwriters Colbie Caillat and Ben Harper, and a slew of classic Broadway musicals.
“This financing opportunity is unique because the theater is such an important landmark on the Peninsula,” said Niki Wong, senior vice president of commercial/SBA lending for Tech CU. “As a local lender, we appreciate being involved in supporting the preservation of an historic property, while also seeing the business opportunity Eric and Lori envision for the future.”
Eric Lochtefeld said Tech CU's lending team structured the refinancing of this property to the benefit of his and Lori’s business model and investment strategy.
“They were also flexible and efficient in dealing with the paperwork and getting the loan funded -- something we greatly appreciate,” Eric said.
The Fox Theatre loan is the latest in financing provided by Tech CU to bolster its CRE presence.
In December, the credit union said it closed on a $10 million commercial real estate loan to developers Pelio & Associates to provide long-term financing for the Los Gatos Motor Inn located in Los Gatos, Calif.
Tech CU was involved in several notable CRE projects in 2013. In July, the cooperative said it closed on a $3 million residential construction loan to fund a four-unit townhouse development in Menlo Park, Calif.
Last March, the credit union said it also closed on a $9.5 million loan to support the refinancing of a multi-tenant property that is located in downtown Mountain View, Calif., and counts Google Inc. as one of its tenants.
In addition, Tech CU approved a $5.14 million loan to support the purchase of an historic South of Market office building in San Francisco.