Dealmaker: HFF Finances $137M for Office/Retail/Industrial

Holliday Fenoglio Fowler LP arranged $136.6 million in financing for properties in Florida, California, New Jersey and Colorado.

In Florida. HFF arranged $115 million in financing for Esperanté Corporate Center, a 255,984-square-foot, trophy office tower in West Palm Beach.

33EsperanteThe HFF team worked on behalf of the borrower, RedSky Capital and JZ Capital Partners, to secure a fixed-rate senior loan through Apollo Global Management on behalf of a managed account, and a fixed-rate mezzanine loan through a life insurance company.

Esperanté Corporate Center is one of three Class AA office towers in West Palm Beach and is the market’s newest office building following a renovation completed in the first quarter. The 20-story property offers water views; tenants include Bank of America, Holland & Knight and Chatham Lodging Trust.

Located at 222 Lakeview Avenue in downtown West Palm Beach, the office tower is situated across the Intracoastal Waterway from the island of Palm Beach, four miles from Palm Beach International Airport and is a short walk to dining, entertainment and retail options located along Clematis Street and within CityPlace. In addition, Esperanté Corporate Center is less than one mile from Brightline’s West Palm Beach station connecting the three major commerce hubs of South Florida via high-end rail cars.

The HFF debt placement team representing the borrower included senior managing directors Chris Drew and Hermen Rodriguez and director Maxx Carney.

“The West Palm Beach CBD office market is one of South Florida’s most dynamic and amenitized locales,” Rodriguez said. “Esperanté has done an extraordinary renovation to their office that will continue to attract high quality tenants.”

ChanceryIn San Francisco, HFF arranged $30 million financing of The Chancery, a 62,421-square-foot, transit-oriented building on Market Street. The HFF team worked on behalf of the borrower, Chelsea Pacific Group, to secure a term loan through Chase Commercial Term Lending.

Built in 1923, The Chancery is a seven-story building featuring ground-floor retail with office space on the floors above. The property was extensively renovated in 2015 and is fully leased to diverse f tenants, including Starbucks and Per Diem Restaurant on the ground floor. Centrally located at 564 Market Street in the middle of San Francisco’s Financial District, The Chancery is directly across the street from the Montgomery Street BART station and within steps of the Second Street Corridor and recently completed Transbay Transit Center terminal.

The HFF debt placement team representing the borrower included senior director Jordan Angel.

In New Jersey, HFF’s Philadelphia office arranged $13 million construction refinancing for a 113,000-square-foot industrial property at 301 Grove Road in West Deptford.

HFF worked on behalf of the borrower, Foxfield Industrial, a joint venture between Novaya Real Estate Ventures and Foxfield Ventures, to secure the construction loan with Webster Bank. Back in 2016, HFF arranged acquisition financing for the borrower that was used to acquire and renovate the property. Proceeds of the new financing will take out the existing loan and fund expansion that will double the rentable square feet of the property.

Currently, 301 Grove Road is leased to Bostik Inc., a global adhesive and sealant manufacturer. Construction will expand the property by adding 122,000 square feet of Class A, 32-foot clear distribution space, bringing total square footage to 235,000. Completion is expected by spring.

301GroveThe property is less than one mile from Interstate 295 and 14 miles from Philadelphia City Center.

HFF’s debt placement team representing the borrower included director Michael Pagniucci along with senior managing director Doug Rodio.

In Colorado, HFF arranged $8.6 million in acquisition financing for Harmony Commons, a 25,701-square-foot, fully leased, newly constructed retail strip center in Fort Collins.

The HFF team worked on behalf of the borrower, Urban Villages LLC and Larimer Associates LLC, to place the 10-year, fixed-rate, non-recourse loan with Guaranty Bank and Trust, a local institution.

Completed in 2017, Harmony Commons consists of two buildings that are home to nine tenants. The property is situated on 2.9 acres at 3541 and 3581 East Harmony Road and will serve as the main retail destination for the future Harmony Technology Park development, which will feature a mix of office, retail, hospitality and healthcare properties. The property is less than a mile east of Interstate 25. Harmony Commons is also conveniently located near employment centers, multiple residential neighborhoods and the Colorado State University campus.

The HFF debt placement team representing the borrower consisted of senior managing director Eric Tupler and director Brock Yaffe.