Dealmaker: HFF Arranges $287.5M in Retail, Office

Holliday Fenoglio Fowler LP arranged $287.5 million in financing for multiple deals across the country.

HFF’s Miami office arranged $60 million in refinancing for Windsor Square Shopping Center, a 661,156-square-foot retail power center in the Charlotte suburb of Matthews, N.C.

HFF worked on behalf of the borrower, Sterling Organization, to secure the 10-year, fixed-rate loan through JPMorgan Chase Bank NA. Loan proceeds were used to pay off a maturing commercial mortgage-backed securities loan.

Windsor Square Shopping Center is 10 miles from downtown Charlotte near the Interstate 485 outer belt and Highway 51. This area serves as the regional retail epicenter for southeast Charlotte and reaches an extended trade area of nearly 320,000 residents living within a seven-mile radius. The retail center was completed in 1987 and underwent a $16 million renovation between 2012 and 2014. At 96 percent leased, Windsor Square Shopping Center is home to anchor tenants Sam’s Club, hhgregg, J.C. Penney, PetSmart, Tuesday Morning, Kohl’s, Lifetime Fitness, Ross Dress for Less, Outback Steakhouse, Designer Shoe Warehouse, Shoe Carnival and Mattress Firm.

The HFF debt placement team representing the borrower was led by managing director Chris Drew, director Brent Bowman and associate director Brian Gaswirth.

In Fullerton, Calif., HFF’s Newport Beach, Calif. Office arranged $33 million in financing for the Raytheon Office Campus, a three-building, 405,130-square-foot office property. HFF worked on behalf of the borrower, Hines, and funds managed by Oaktree Capital Management LP. to secure the five-year, floating-rate loan through a national bank.

The Raytheon Office Campus consists of two office buildings and one utility plant on 33 acres at 1801 and 1901 Hughes Drive in Fullerton, 22 miles southeast of downtown Los Angeles and five miles north of Anaheim. The site is surrounded by upscale residential communities and shopping centers and has easy access to Interstate 5 and Highway 91. The headquarter-style campus is fully leased to Raytheon Co. and serves its six main business segments, including Thales Raytheon Systems Joint Venture, Raytheon Highway Transportation Management Systems and Aeronautical Software Production.

The HFF debt placement team representing the borrower was led by senior managing director Kevin MacKenzie and associate Jamie Kline. “The sponsor has done an excellent job executing their business plan on this asset, and this loan helps get them through a critical stage in the process,” MacKenzie said.

In Austin, Texas, HFF’s Houston office arranged $44.77 million in post-acquisition financing for Brodie Oaks Shopping Center, a 322,590-square-foot, grocery-anchored shopping center and office building.

HFF worked on behalf of the borrower, Lionstone Investments, to place the 10-year, floating-rate loan with JPMorgan Chase Bank NA. Additionally, HFF, working on behalf of the former owner, closed the sale of this property to the borrower earlier in the summer.

Brodie Oaks Shopping Center comprises 285,044 square feet of retail and a 37,546-square-foot office building known as the Brodie Oaks Professional Plaza. Anchored by Sprouts Farmers Market, the 91.6-percent-leased property is also home to retail and office tenants, including Hobby Lobby, Neiman Marcus Last Call, Olive Garden, Performance Bicycle, Starbucks, Atlantic Engineering Group, Parallon Workforce Solutions and Flashback Data.

Situated on 30.84 acres at 4006 South Lamar Boulevard, the asset is five miles south of Austin’s central business district at the confluence of South Lamar Boulevard, South Capital of Texas Highway (Loop 360) and U.S. Highway 290/State Highway 71, which are some of the most heavily-trafficked thoroughfares in Austin. More than 100,000 residents with an average annual household income of $77,140 live within a three-mile radius of the center.

The HFF debt placement team representing the borrower was led by managing director Colby Mueck, director Kyle Spencer and associate director Matthew Putterman. Senior managing directors Jim Batjer and Barry Brown led the property sale transaction.

In Birmingham, Ala., HFF’s Atlanta office arranged $32.4 million in financing for Brookwood Office Center, a 169,459-square-foot, nine-story office building.

HFF worked on behalf of the borrower, an indirect subsidiary of Preferred Apartment Communities, Inc., to secure the 15-year acquisition loan through Sentinel Asset Management. The 3.52 percent, fixed-rate financing will also be serviced by HFF.

Completed in 2007, the LEED Silver-certified Brookwood Office Center is fully leased to a mix of national and international corporations, including Kinder Morgan, Merrill Lynch and PriceWaterHouseCoopers. Jos. A. Bank and O’Henry’s Coffee occupy the ground-floor retail space and tenants have access to a four-story, 896-space parking structure.

The property is on 5.08 acres at 569 Brookwood Village within the Brookwood Village upscale mixed-use shopping development. It is immediately off of Highway 280 in the Mountain Brook/Midtown submarket of Birmingham, an affluent area boasting an average household income within three miles of more than $97,000, an average home value of more than $371,000 and a population base in which more than 62 percent of residents hold a bachelor’s degree or higher. The Birmingham market is the largest office market between Georgia and Texas and comprises more than 58 million square feet of office space.

The HFF debt placement team representing the borrower was led by senior managing director Ed Coco and senior real estate analyst Matt Casey.

In West Los Angeles, HFF’s Los Angeles office closed a $68.2 million sale of and arranged $43.3 million in financing for Sepulveda Center, an iconic, Class A office tower totaling 178,157 square feet.

HFF marketed the property on behalf of the seller, KBS Capital Advisors, and procured the buyer, an affiliate of The Swig Co. Additionally, HFF worked on behalf of the new owner to secure the three-year, floating-rate loan through MetLife Real Estate.

Sepulveda Center is at the intersection of the I-405 and I-10 Freeways at 3415 S. Sepulveda Boulevard. The location has visibility from more than 375,000 cars per day on I-405 and is within proximity to Silicon Beach and the newly-constructed LA Metro Expo line’s Sepulveda Station. The surrounding areas of Culver City and Playa Vista boast average median housing values of $860,000, 43 percent higher than the media value in greater Los Angeles County. The 12-story property is 83 percent leased to a mix of media, technology and financial tenants. The new owner will implement a capital improvement plan that will update the lobbies, bathrooms and outdoor facilities as well as expand the common building amenities.

The HFF investment sales team representing the seller was led by senior managing director Ryan Gallagher, director Andrew Harper and senior managing director Michael Leggett, who is also co-head of HFF’s West Coast team. HFF’s debt placement team was led by senior managing director Bruce Ganong and director Jeff Sause.

In Greenwood Village, Colo., HFF’s Denver office arranged $30.6 million in financing for Tuscany Plaza, a 260,000-square-foot, Class A office asset. HFF worked on behalf of the borrower, Crescent Real Estate LLC, to secure the seven-year, 3.45 percent, fixed-rate loan through a correspondent life insurance company.

Tuscany Plaza is at 6312 South Fiddlers Green Circle adjacent to the Arapahoe at Village Center light rail station at the northwest confluence of Arapahoe and Interstate 25 in Greenwood Village. The 90-percent-leased trophy office building features a courtyard with outdoor art and walking trails and structured parking; tenants include Red Robin and Xanterra Parks and Resorts.

The HFF debt placement team representing the borrower was led by director Jim Curtin and senior managing director Eric Tupler.

Also in the Denver area, HFF arranged $19.032 million in financing for The Phenix at 4 Mile, a 177-unit apartment community in Glendale. HFF worked exclusively on behalf of the borrower, Slipstream Properties, to secure the 10-year, fixed-rate loan with five years of interest only through Freddie Mac’s CME Program. The securitized loan will be serviced by HFF through its Freddie Mac Program Plus Seller/Servicer program.

The Phenix at 4 Mile consists of eight residential buildings encompassing 11 studio, 119 one- and 47 two-bedroom units averaging 617 square feet. Originally built in phases in 1962 and 1972, Slipstream acquired the property in 2015 and renovated, including unit interiors, building exteriors, common areas and amenities. The community features a swimming pool and spa, grilling area, enclosed bike shelter and courtyards. Its location provides residents immediate access to Denver’s Cherry Creek neighborhood. Additionally, the property is situated near Colorado Boulevard allowing for access to major retail drivers, the central business district, surrounding suburbs and Interstate 25.

The HFF debt placement team representing the borrower was led by associate director Kristian Lichtenfels.