Square Mile, Bank OZK close $373m life sciences construction loan

The financing will be used for the development of a San Francisco project.

Square Mile Capital Management and Bank OZK have closed a $373 million loan to finance the construction of the first phase of Southline, a planned mixed-used life sciences development in South San Francisco. Eastdil Secured arranged the financing.

Bank OZK funded the senior portion of the loan, with Square Mile providing the remainder on behalf of Menlo Park, California-based investment and development company Lane Partners. The sponsor’s partners include Goldman Sachs Asset Management’s Real Estate group and an affiliate of Beacon Capital partners.

Eric Cohen, a managing director at Square Mile Capital, said the firm is prioritizing purpose-built lab developments in strong life sciences markets. He noted that the firm has worked frequently with Bank OZK as well as Goldman Sachs and Beacon.

The planned project, located at 30 Tanforan Avenue, is on a 28.5-acre site adjacent to the San Bruno BART station and near the San Francisco International Airport. It is also close to major highways and two Caltrain stations.