Dealmaker: HFF Secures $148M for Offices in Chicago, Denver
Holliday Fenoglio Fowler, Houston, arranged $148.2 million in acquisition financing for office towers in Chicago and Denver.
HFF Managing Director Tim Joyce led the debt placement team that arranged $133.9 million for 200 West Adams, a 32-story, 684,000-square-foot office property in Chicago’s West Loop.
The property’s former owners, Sterling Equities, New York, and Lincoln Property Co., Dallas, retained HFF to sell the property. HFF found the purchaser Gerding Edlen, Portland, Ore., and secured the new owner’s three-year floating-rate loan through AEW Capital Management LP, Boston.
Built in 1985 on the corner of Adams and Wells Street near the LaSalle Street corridor, 200 West Adams is currently 91 percent leased to tenants including the GSA, BMO Harris and law firm Lowis & Gellen.
“This property was offered at a substantial discount to replacement cost with rents that are well below market rates,” said HFF Senior Managing Director Jeff Bramson, who led the investment sales team with Senior Managing Director Jaime Fink. “The wide gap between current in-place rents and current market rents combined with the near-term rollover of more than 50 percent provides an investor with a substantial return throughout the holding period.”
In Denver’s central business district, HFF arranged $14.3 million for 475 17th Street, a 16-story, 151,000-square-foot office building. Principal Real Estate Investors, Des Moines, Iowa, provided the five-year fixed-rate loan.
HFF marketed the asset on behalf of 475 Investment Partners, Denver. Phoenix Property Co., Dallas, purchased the building for $26 million. The 1975-vintage property at the corner of 17th Street and Glenarm received more than $1 million in capital upgrades since 2012, including an updated lobby and two-story atrium.
HFF Associate Director Leon McBroom and Senior Managing Director John Rose led the debt-placement team while Senior Managing Directors John Jugl and Mary Sullivan led the investment sales team.
