Dealmaker: HFF Secures $276M for Office, Mixed-Use Properties
Holliday Fenoglio Fowler, Houston, secured $276 million for office and mixed-use assets in California and Florida.
In downtown San Diego, an HFF debt placement team led by Senior Managing Director Aldon Cole arranged $81.2 million in acquisition financing for 600 B Street, a 359,000-square-foot Class A office tower encompassing a city block.
HSBC Bank USA, McLean, Va., supplied a three-year interest-only loan with two one-year extensions to buyer Rockwood Capital LLC, Los Angeles. The floating-rate loan included two one-year extension options.
An HFF team also marketed the institutional-quality property for the seller, a partnership between Lincoln Property Co., Dallas, and Angelo, Gordon & Co., New York. The investment sales team included HFF Senior Managing Director Nick Psyllos, Senior Director Nick Frasco, Senior Managing Director Ryan Gallagher and Analysts Taylor Bergthold and Kara Mathis.
The 24-story tower traded for $109.5 million. It is currently 89.7 percent leased to 33 tenants including WeWork and the San Diego Union-Tribune.
Psyllos said Rockwood Capital saw an opportunity to acquire the asset as downtown San Diego’s office market resurgence continues. “It provides both long-term tenancy with the Union-Tribune and WeWork and a good mix of smaller tenants throughout the building to build on that momentum,” he said.
In North San Jose, Calif., HFF secured $84.7 million to refinance 4300 and 4400 North First Street, a two-building Class A office campus totaling 376,664 square feet. The Carlyle Group, Washington, D.C., received the five-year floating-rate loan.
Completed in 2000, 4300 and 4400 North First Street are both three-story, steel-framed office buildings with 63,000-square-foot floorplates in Silicon Valley’s Innovation Triangle submarket.
The debt placement team representing the borrower included HFF Director Chris Gandy and Associate Christie Donnelly.
HFF also arranged $110.3 million in construction financing for Midtown 6, a 31-story mixed-use residential and retail tower in midtown Miami. The debt placement team included Managing Directors Danny Kaufman and Elliott Throne and Senior Director Scott Wadler with Executive Managing Director Mike Tepedino and Senior Director Jennifer Keller.
The borrower, a joint venture between institutional investors advised by J.P. Morgan Asset Management and Magellan Development Group, received the funding from PNC Bank, Pittsburgh, and BMO Harris Bank, Chicago.
