Dealmaker: HFF Finances $270M for Office, Mixed Use

Holliday Fenoglio Fowler LP announced nearly $270 million in financing for office and mixed-use deals.

HFF advised advised ScanlanKemperBard Companies on its $65 million disposition and recapitalization of CH2M Center, a 226,815-square-foot, Class A office tower in Portland’s South End Innovation District. Additionally, HFF worked on behalf of the new partnership to secure $44.25 million in financing.

Working on behalf of SKB, HFF recapitalized the property with funds managed by Oaktree Capital Management LP. and arranged a 10-year, fixed-rate loan through Wells Fargo for the new partnership.

Renovated in 2016, CH2M Center is a 10-story office tower with a 228-stall parking garage that offers a mix of traditional and creative office space with sweeping views of downtown Portland. The asset is 87 percent leased to nine tenants, including anchor tenant CH2M Hill, Konica Minolta, Zidell and the City of Portland.

Situated at 2020 SW Fourth Avenue, CH2M Center serves as the keystone of the South End Innovation District, bridging Oregon Health & Science University, Portland State University and the South Waterfront. Its location at the Lincoln St/SW 3rd Avenue MAX station provides it with connectivity to the greater Portland region.

The HFF investment advisory team advising on the disposition and recapitalization included director Logan Greer, senior managing directors Gerry Rohm and Michael Leggett, director Dave Otis and analyst Jeff Hodson.

In Colorado, HFF provided $70.675 million financing for Granite Place at Village Center, a 10-story, 299,568-square-foot, Class AA office tower in Greenwood Village.

The HFF team worked on behalf of the borrower, Crestone Partners LLC in partnership with an institutional investor, to secure the six-year, fixed-rate, interest-only loan through Principal Real Estate Investors. Loan proceeds were used to acquire the property.

Granite Place at Village Center is located at 6165 S. Willow Drive in the southeast submarket of Denver. It features a large community area on the ground floor where workers can work and socialize, full height glass providing abundant natural light and mountain views, conference facilities with a boardroom, large training room and pre-function staging area, fitness center and a full service café. The building is fully leased to two companies; Charter Communications, one of the largest private employers in Greenwood Village; and CSG International.

The HFF debt placement team representing the borrower included senior managing director Eric Tupler.

In California, HFF provided $31.543 million in financing for Chelsea Santa Monica, a luxury residential and retail property one block from the beach in Santa Monica.

The HFF team worked on behalf of the borrower, Kort & Scott Financial Group, to place the 10-year, floating-rate loan with Freddie Mac’s CME Program. The securitized loan will be serviced by HFF, a Freddie Mac Multifamily Approved Seller/Servicer for conventional loans.

Chelsea Santa Monica has 53 luxury rental units comprising 28 studios, 19 one-bedrooms and 6 two-bedroom units, which average 631 square feet. Completed in 2016, the residential component is 95 percent leased. The LEED Gold-certified, four-story building is situated atop two levels of subterranean parking. It also features 5,988 square feet of 100-percent-leased, ground-floor retail space occupied by Uovo Pasta, HiHo Cheeseburger and CAVA Mezze Grill.

The HFF team for both the Chelsea Santa Monica and Wilshire Valencia transactions included senior director Zach Koucos and director Lee Redmond.

Also in Santa Monica, HFF provided $57.2 million in financing for two mixed-use properties and two creative office assets totaling 126,598 square feet. The properties are located at 401 Santa Monica Boulevard, 1347 4th Street, 625 Arizona Avenue and 2415 Michigan Avenue.

The HFF team worked on behalf of the borrower, Lionstone Investments, a data-analytics driven real estate investment firm, to secure a 15-year, 3.74 percent, fixed-rate refinancing for 625 Arizona, 401 Santa Monica Boulevard and 1347 4th Street through Principal Real Estate Investors. Principal provided a 15-year, floating-rate loan for 2415 Michigan Avenue.

The 95-percent-leased portfolio is situated in the heart of Santa Monica and all of the properties are within walking distance of the 26th/Bergamot Expo Line station, within close distance of Interstate 10 and less than a five-minute drive from Santa Monica Airport. Additionally, they are all located a few blocks from the Third Street Promenade, a highly trafficked pedestrian street mall between Broadway and Wilshire. 401 Santa Monica and 1347 4th Street comprise 50,000 square feet of creative office space above 20,000 square feet of ground floor retail. Major tenants include Air Map Inc, the Bedford Falls Company, Sweetgreen and Bolthouse Farms. 625 Arizona is a 17,600-square-foot, single-tenant creative office space leased to Picture Head. 2415 Michigan comprises 39,989 square feet of creative office space and is fully leased to Headspace, Shade VFX and Mistress Creative.

The HFF debt placement team representing the borrower included managing director Mark Wintner.