HFF Arranges $200M for Mixed-Use Properties

Holiday Fenoglio Fowler LP arranged more than $200 million for properties in Texas, California, Oregon and Illinois and arranged acquisition financing for a North Carolina office property.

HFF arranged $65 million in interim financing for the 307,509-square-foot retail component of CityCentre, a premier mixed-use urban development in Houston. HFF worked on behalf of the borrower, a partnership between Midway and L&B Realty Advisors, to secure financing through JPMorgan and First Tennessee Bank.

Originally developed by the borrower in 2007, CityCentre comprises retail, office, hotel and residential space surrounded by open-air plazas and green spaces. The retail component is a shopping and entertainment destination lifestyle center that is leased to national and regional retailers and restaurants, including Studio Movie Grill, west elm, Sur La Table, Eddie V’s, BRIO Tuscan Grille, Charming Charlie, H&M, Urban Outfitters and Anthropologie.

Located at 800 Town and Country Boulevard, CityCentre is at the southeastern corner of Interstate 10 and Beltway 8 near Houston’s Energy Corridor.

The HFF debt placement team representing the borrower was led by executive managing director Scott Galloway and managing director Colby Mueck.

In Newport Beach, Calif., HFF secured $81.337 million in acquisition/bridge financing for Fairmont Newport Beach, a 444-room, full-service hotel.

HFF worked on behalf of the borrower to place the three-year, floating-rate loan with Aareal Bank. Loan proceeds will be used to purchase the hotel and implement a property improvement plan that will include rebranding it as a Marriott Renaissance Hotel.

The 10-story Fairmont Newport Beach was completed in 1983 and renovated in 2007. It features 42,000 square feet of indoor and outdoor meeting and event space; an 8,000-square-foot spa; outdoor pool with cabanas; fitness center; tennis courts; 24-hour business center and two food and beverage options, the Citrus and AVO Bar + Restaurant.

The rebranding process will include renovations of the lobby, guestrooms and restaurant and bar space. Situated on 7.3 acres at 4500 MacArthur Boulevard in Orange County, the Fairmont Newport Beach is located at the conflux of the coastal community of Newport Beach and the commercial core of Irvine, two of the nation’s largest master-planned urban communities. The hotel is proximate to 54 million square feet of office space, world-class retail and area attractions.

The HFF debt placement team representing the borrower was led by managing director James Fowler.

In Oregon, HFF closed the $23.5 million sale of and arranged the financing for Gresham Station Medical Plaza, a 100,419-square-foot, four-building medical office complex in the suburban Portland.

HFF marketed the property on behalf of the seller, Westlake Realty Group Inc., and procured the buyer, Stockdale Capital Partners. Additionally, HFF worked on behalf of the new owner to secure the acquisition loan. HFF handled the sale of the adjacent Gresham Station Shopping Center on behalf of Westlake in 2016.

Gresham Station Medical Plaza is located at 831 NW Council Drive, 862-894 NW Burnside Drive and 1851-1867 NW Civic Drive, near the Adventist Medical Center. This location, southeast of Portland, is adjacent to Gresham Station Shopping Center, Gresham City Hall and the Civic Drive MAX station, and has a population of 243,000 people within a five-mile radius. Completed in 2004, the property is 77 percent leased and is anchored by Adventist Health. Additional tenants include DaVita HealthCare Partners Inc. and Providence Health & Services.

The HFF investment sales team representing the seller was led by senior managing director Nick Kucha, managing director Evan Kovac, associate Andrew Milne and analyst Trent Jemmett. HFF’s debt placement team representing the borrower was led by managing director Jeremy Womack and associate director Erica Christensen.

In Illinois, HFF closed the $35.4 million sale of and arranged $23.1 million in acquisition financing for Lincoln Place, a 272,060-square-foot shopping center in the St. Louis-area community of Fairview Heights, Ill.

HFF worked on behalf of the seller, Spirit Realty Capital. Acadia Strategic Opportunity Fund IV purchased the asset. Working on behalf of the new ownership, HFF also placed the five-year, fixed-rate acquisition loan with a national bank.

Lincoln Place is situated on 17 acres at 5905-6109 North Illinois Street at the “main and main” intersection of North Illinois and Lincoln Highway in Fairview Heights, 14 miles east of downtown St. Louis. Lincoln Place is 99.6 percent leased to a mix of national tenants, including Kohl’s, Ross Dress for Less, Old Navy, Marshalls, Famous Footwear, Five Below, Pier 1 Imports, Saint Louis Bread Company and Mattress Firm, in addition to a separately owned Lowe’s, Chili’s and Chick-fil-A. The center was developed in 1999 and renovated in 2005.

The HFF investment sales team representing the seller was led by directors Amy Sands and Clinton Mitchell. The HFF debt placement team representing the new owners was led by managing director Timothy Joyce.

Additionally, HFF assisted Chicago-based Origin Investments in acquiring Keystone 100, a 62,300-square-foot, Class A office building within Keystone Office Park in Durham, N.C., from Herndon, VA-based American Real Estate Partners for an undisclosed purchase price.

HFF completed the investment transaction, representing American Real Estate Partners, and arranged acquisition financing for Origin Investments.

Keystone 100 is a two-story office building at 630 Davis Drive, within Keystone Office Park. The broader Keystone Office Park is a three-building business park situated close to Interstates 40 and 540 and the Triangle Expressway, providing access to downtown Raleigh, downtown Durham, Cary, Chapel Hill and the Raleigh-Durham International Airport.

Tenants occupying space at Keystone 100 include ZTE, Inno Clinical, State of North Carolina and Oriel Therapeutics. Upon acquisition, Origin will complete a building modernization program to update the lobby, fitness center and other common area and amenity spaces.

“We look for modern, well-located assets like Keystone 100 that can be successfully repositioned in the local market,” said David Welk, Managing Director of Acquisitions for Origin. “The continued growth of the Research Triangle marketplace warrants the investment we are making in acquiring and further modernizing Keystone 100.”

The HFF investment sales team representing the seller was led by director Scot Humphrey, senior managing director Ryan Clutter and associate director Chris Lingerfelt. HFF’s debt placement team representing the buyers was led by director Cory Fowler.