Dealmaker: HFF Secures $291M for Office, Mixed-Use Assets
Holliday Fenoglio Fowler, Houston, secured $291.1 million for office and mixed-use properties in Pittsburgh and Houston.
In Pittsburgh, HFF arranged $127.5 million to refinance Nova Place and 106 Isabella, a 1.3-million-square-foot office complex and nearby office building. The HFF team worked for borrower Faros Properties LLC, Pittsburgh, to secure a five-year floating-rate loan through Wells Fargo, San Francisco.
Nova Place–a former urban mall converted into office use in the early 1990s–includes three office complexes totaling 1.25 million square feet. The property is 86 percent leased to tenants including PNC Bank, Microbac Laboratories and United Healthcare. Located on Pittsburgh’s North Shore, Nova Place is directly across the Allegheny River from the city’s central business district and convenient to PNC Park, Heinz Field and the Andy Warhol Museum. The 87,000-square-foot 106 Isabella office building is adjacent to the Warhol.
The HFF debt placement team representing Faros Properties included Executive Managing Director Gerard Sansosti and Senior Managing Director Nick Matt.
Sansosti and Matt also arranged $42 million to refinance the Grant Building, a 461,000-square-foot Pittsburgh office tower. Borrower McKnight Grant Building Associates LP, Pittsburgh, received a 10-year fixed-rate first mortgage through Starwood Mortgage Capital, Greenwich, Conn., and a 10-year mezzanine loan through Morrison Street Capital, Portland, Ore.
The Grant Building occupies 310 Grant Street in Pittsburgh’s central business district. The 37-story property two blocks from the First Avenue T station is 90 percent occupied by Huntington Bank, The Hillman Co. and other tenants.
In downtown Houston, an HFF debt placement team led by Managing Director Steve Heldenfels and Director Matthew Putterman secured $121.6 million to redevelop The Star, a historic mixed-use residential, retail and storage property.
Provident Realty Advisors, Dallas, received a floating-rate bridge loan through TPG RE Finance Trust, San Francisco.
The Star was originally commissioned in 1915 by the Texas Co., which later became Texaco, and is one of the last remaining pre-World War II buildings in Houston’s central business district. After redevelopment, the property will include 286 multifamily units, more than 26,000 square feet of retail and 8,000 square feet of climate-controlled storage.
The Star is bounded by Rusk, Fannin, Capitol and San Jacinto Streets, placing it within walking distance to Market Square Park, Minute Maid Park, the Theater District and the highest concentration of jobs within one square mile in Houston. Across the street stand two of Houston’s newest Class A office towers, BG Group Place and 609 Main at Texas.
