Dealmaker: HFF Arranges $88M Construction Loan in Seattle

Holliday Fenoglio Fowler, Houston, arranged an $88 million construction loan for Urban Union, a 291,000-square-foot Class A office currently under development in Seattle.

HFF worked on behalf of borrower Schnitzer West LLC to secure financing from Blackstone Real Estate Debt Strategies, New York, and Bank of the Ozarks, Little Rock, Ark.

When completed in March, Urban Union will house 284,000 square feet of office space and 6,725 square feet of ground-level retail in its 12 stories. The property will cater to technology, advertising, media and information occupiers with two collaborative workspace features: The Union, a two-story space featuring a conference center, catering kitchen and board room, and The Overlook, an outdoor deck and rooftop conference center with views of Lake Union and the Space Needle.

Located at 501 Fairview Avenue North, Urban Union is two blocks south of Lake Union at the gateway to Seattle’s South Lake Union neighborhood, home to Amazon.com, the Gates Foundation, the Fred Hutchinson Cancer Research Center and the University of Washington Biotech campus.

Michael Tepedino, senior managing director, led HFF’s debt placement team with Director Jennifer Keller and Managing Director Tom Wilson.

HFF also secured $24.8 million for Hazel Dell Towne Center, a retail center in Vancouver, Wash. Proceeds refinanced the 264,000-square-foot property. Senior Managing Director Bruce Ganong, Managing Director Casey Davidson and Associate Director Brandon Roth worked on behalf of sponsor Pine Tree Commercial Realty, Northbrook, Ill., to place the five-year floating-rate loan with East West Bank, Pasadena, Calif.

The 84-percent-leased Hazel Dell Towne Center houses national and local tenants including Kohl’s, Bed Bath & Beyond and Petco. Target shadow-anchors the property.

Roth said Pine Tree acquired the property in 2007.