HFF Arranges $167M for California Offices

Holliday Fenoglio Fowler, Houston, arranged $167.3 million for three California office assets.

In San Francisco’s NOMA submarket, HFF Senior Managing Director Bruce Ganong and Analyst Bercut Smith secured $145 million in construction financing for 633 Folsom, a seven-story, 171,600-square-foot office building.

A domestic bank provided the financing to The Swig Co. LLC, San Francisco. Loan proceeds will complete a full building renovation and expansion that will add five floors, transforming the property into a 12-story, 266,000-square-foot Class A office building.

Originally built in 1967 by The Swig Co., 633 Folsom has been fully leased for the past 20 years, most recently to California Pacific Medical Center. The renovation and expansion project will commence this summer and add five stories and more than 94,000 square feet and raise the building’s height from 92 feet to 165 feet.

“The planned repositioning and expansion of 633 Folsom coincides with a shift in leasing patterns from traditional tenants seeking 5,000 to 10,000 square feet to large users establishing new headquarters or satellite campus locations in the San Francisco central business district,” Ganong said.

In Brea, Calif., an HFF debt placement team including Senior Directors John Chun and Zack Holderman secured $42.3 million in financing for Brea Imperial Center, a two-building medical office/office complex totaling 194,300 square feet.

Chun and Holderman worked on behalf of the borrower and its representative, HPA Growth Fund and Healthcare Property Advisors, to secure the two-year floating-rate acquisition loan via debt fund capital.

Brea Imperial Center includes 2727 and 2767 East Imperial Highway on 10.4 acres in the North Orange County submarket, one of the strongest office markets in Orange County. Chun said 2727 East Imperial Highway has 104,660 square feet and is fully occupied by Goodrich, a subsidiary of United Technologies Corp. The other asset, 2767 East Imperial Highway, is an 89,650-square-foot building 100 percent leased to St. Jude Medical Center. Both two-story buildings were renovated in 2000.