HFF Secures $95M in Construction Financing

Holliday Fenoglio Fowler, Houston, secured $94.7 million in construction financing for an office building in Chicago’s West Loop and a Vancouver, Wash. multifamily property.

HFF Senior Managing Director Michael Kavanau, Managing Director Tim Joyce and Associate Director Christopher Knight arranged $78 million for Fulton West Phase II, a nine-story, 290,700-square-foot creative office building. The debt-placement team represented the developer, a partnership comprising Sterling Bay, Chicago, and institutional investors advised by JPMorgan Asset Management, New York. They placed the loan with Bank of America, Charlotte, N.C.   

Upon completion next year, Fulton West Phase II will include 261,000 square feet of office space with 34,000- to 40,000-square-foot average floor plates and 18,500 square feet of ground-floor retail space. Sterling Bay, Glassdoor and Skender Construction pre-lease nearly half of the building’s rentable square feet.  

In Washington, HFF Associate Director Erica Christensen led the debt placement team that secured $16.7 million for Heritage Villas, a 135-unit Class A garden-style apartment community under development in Vancouver. HFF represented the borrower, a partnership with developer Gregg Mecham and other local investors, and secured the construction financing with a regional bank. 

Due for completion in 2017, Heritage Villas units will average 945 square feet. The property is located within 15 miles of Portland International Airport and Portland’s central business district. 

“Construction financing is more conservative today than it has been during the past few years; however, lenders can still offer competitive terms for well-thought-out projects in strong markets,” Christensen said. “With limited new apartment construction in Vancouver and continued strong in-migration to the market, we expect the property to perform very well.”