CIM Group Closes $132.5 Million Loan to Pacific Elm Properties for Completion of Partial Office-to-Multifamily Conversion of Santander Tower in Dallas

LOS ANGELES--(BUSINESS WIRE)--CIM Group announced today that its CIM Real Estate Debt Solutions business, on behalf of a CIM-managed fund, has closed a $132.5 million whole loan to Pacific Elm Properties to recapitalize Santander Tower, a landmark high-rise in Downtown Dallas that has been successfully repositioned from a traditional office building into a vertically-stacked, mixed-use development.

This financing follows the completion and stabilization of the project’s first phase of Peridot, a luxury residential conversion that delivered approximately 291 apartment units in 2023. The new loan will support construction of the project’s second phase, which will add 105 additional apartments and bring the total Peridot offering to 396 residences upon completion. Since the launch of the Peridot conversion, approximately 350,000 square feet of office leases have been signed at Santander Tower, demonstrating the positive impact of the building’s repositioning.

Through its CIM Real Estate Debt Solutions business, CIM Group applies its broad experience as an owner, operator, and developer of high quality commercial real estate to its lending strategy and believes this helps differentiate the company from many other debt providers. With Santander Tower, CIM Group was able to provide a tailored financial solution to this complex office-to-multifamily conversion midway through its construction, a project that included maintaining the Class A office environment, bringing superior residences across multiple non-contiguous floors, and adding resident amenities. Based on its extensive knowledge of commercial real estate coupled with its understanding of urban markets, this transaction signifies CIM Group’s support of repositioning office properties to better serve communities as they adapt to changing demand.

Located at 1601 Elm St. in Downtown Dallas, the Peridot apartment residences are configured as one- and two-bedroom floorplans with abundant windows, high ceilings and designer interiors. Residents can enjoy superior on-site amenities including a resort-inspired pool deck, outdoor grills and fire pits, resident lounge, pickleball court, sauna and access to the private Tower Club and its in-home dining program.

In addition to the Peridot apartments, the mixed-use Santander Tower offers the Mint House luxury hotel on floors 49 and 50, which was successfully converted from office space to 60 extended-stay units by Pacific Elm Properties in 2020. Santander Tower will also have approximately 858,737 square feet of Class A office space remaining at the property upon completion in addition to the private Tower Club on the 48^th floor, ground-floor retail, and parking stalls for the office tenants and Peridot residents.

Through mortgage and mezzanine loans, affiliates and managed funds, CIM Group provides bridge and construction financing to owners and developers of commercial real estate in major markets across the United States and works with borrowers to offer an array of lending solutions.

To learn more about CIM Group’s credit strategies, visit www.cimgroup.com/borrow.

About CIM Group

CIM is a community-focused real estate and infrastructure owner, operator, lender and developer. Since 1994, CIM has sought to create value in projects and positively impact the lives of people in communities across the Americas by delivering more than $60 billion of essential real estate and infrastructure projects. CIM’s diverse team of experts applies its broad knowledge and disciplined approach through hands-on management of real assets from due diligence to operations through disposition. For more information, visit www.cimgroup.com.