Dealmaker: HFF Secures $128M for Office, Hotel Properties

Holliday Fenoglio Fowler, Houston, secured $128.3 million for office and hotel assets in Missouri, California and Massachusetts.

In downtown Los Angeles, HFF secured $56.4 million in bridge financing to redevelop and renovate the Herald Examiner Building, a 100,000-square-foot building completed in 1914 to house William Randolph Hearst’s Los Angeles Examiner newspaper.

A debt placement team led by HFF Managing director Todd Sugimoto with Senior Director Jeff Sause and Analyst Spencer Richley represented developer The Georgetown Co., New York, and arranged a bridge loan from J.P. Morgan, New York. Loan proceeds will fund redeveloping the existing structure into creative office, retail and restaurant space while maintaining the building’s historic features.

Arizona State University plans to open a Los Angeles campus in the building, located at 1111 South Broadway in the city’s South Park neighborhood, which also houses the Microsoft Theater, Staples Center, the Los Angeles Convention Center and the Ace Hotel.

The Georgetown Co. recently completed a $280 million multi-phase redevelopment of Sony Pictures Entertainment’s Culver City Studio Lot, creating new office and production facilities and improved public spaces. Georgetown also previously developed a theater and office buildings at the Paramount Pictures Studios on Melrose Avenue in a joint venture with Paramount Pictures.

HFF also arranged $60.2 million in bridge financing for 1100 Main Street, a 30-story, 657,000-square-foot office building in Kansas City, Mo. Director Leon McBroom and Senior Managing Director Mark Katz worked for borrower Somera Road Inc., New York, and secured the floating-rate acquisition bridge loan through TPG RE Finance Trust, New York.

The Class A property occupies a city block at 1100 Main Street in Kansas City’s central business district next to Kansas City’s Power & Light District. Current tenants include law firm Dollar Burns & Becker, Kansas City Business Journal and Alight Analytics. The property changed hands in an off-market transaction.

Somera Road Principal Ian Ross noted the closing bridged the holidays and the new year. “We have been a long-time believer in continued growth of the downtown KCMO market and we believe the timing and the supply/demand dynamics are just right to bring this asset back to Class A status,” he said.

In Provincetown, Mass., HFF Managing Director Greg LaBine and Director Martha Nay secured $11.7 million for the 129-key Harbor Hotel Provincetown. The team represented Linchris Hotel Corp. and arranged a seven-year fixed-rate acquisition loan through HarborOne Bank, Brockton, Mass.

The largest hotel in Provincetown, Harbor Hotel Provincetown is a three-building seasonal boutique hotel on the waterfront at 698 Commercial Street.

Linchris also owns Surfside Hotel & Suites down the street from Harbor Hotel Provincetown.