HFF Sources $342M in Construction Financing

Holliday Fenoglio Fowler, Houston, arranged $341.6 million in construction financing for a Manhattan mixed-use property and a Tustin, Calif. creative office campus.

In New York, HFF secured $200 million in pre-development financing for 520 Fifth Avenue, a to-be-built mixed-use property. Managing Director Christopher Peck and Senior Managing Director David Nackoul represented a joint venture between Ceruzzi Holdings LLC, New York, and SMI USA, New York, to secure the floating-rate loan through Mack Real Estate Credit Strategies, New York.

HFF had previously brokered the property’s sale to the partnership. The proceeds of the new loan will repay existing debt, conclude design and move forward with pre-development work.

Located at the southwest corner of  West 43rd Street and Fifth Avenue, the development will total 425,000 square feet with 33,000 square feet of Fifth Avenue retail, Class A condominiums and a five-star hotel. The partnership will break ground on the 10,625-square-foot site in 2018.

HFF also arranged $141.6 million in financing to construct phase I of FLIGHT at Tustin Legacy, a 470,000-square-foot creative office campus in Tustin, Calif.

Managing Director Mark Wintner and Senior Managing director Doug Bond led the debt-placement team representing the developer, a partnership between Lincoln Property Co., Dallas, and Alcion Ventures, Boston. They placed the three-year construction loan with ACORE Capital, Larkspur, Calif., and iStar, New York.

As the first office development within the 1,600-acre former Marine Corps Air Station Tustin site, FLIGHT will feature hangar-inspired architecture and a 7,000 square-foot conference center to provide collaborative space for tenants or third parties. Delivery is scheduled for early 2019.

HFF reported little large-scale development of authentic creative office space in Orange County, significantly lagging Los Angeles, San Francisco and Silicon Valley. FLIGHT will be the first purpose-built creative office campus in the county. In the future, FLIGHT Phase II will add an additional 550,000 rentable square feet of creative office space.