Dealmaker: HFF arranges $171M for Office, Industrial
Holliday Fenoglio Fowler, Houston, secured $154.7 million in joint venture equity and construction financing for One Esterra Park, a Class A office property under development in Redmond, Wash.
The transit-oriented asset is adjacent to Microsoft’s world headquarters.
Working for Capstone Partners LLC, Portland, Ore., HFF sourced equity capital from an institutional investor and placed the construction loan with U.S. Bank, Minneapolis.
The project is the next phase of the three million-square-foot Esterra Park live-work-play master-planned community in suburban Seattle. With delivery scheduled for fourth quarter 2020, One Esterra Park will total 245,000 square feet of space in a six-story building designed with technology tenants in mind. It occupies a 2.2-acre site at 15550 NE Turing Street adjacent to the future Overlake Village Transit Station and the future State Route 520 off-ramp, which will connect it to Interstates 405 and 90.
The HFF debt and equity placement team included Senior Director Ben Bullock, Senior Managing Directors Charles Halladay, Bruce Ganong, Michael Leggett and Tom Wilson and Director Zach Goodwin.
HFF also arranged a $17 million refinancing for a fully leased 152,692-square-foot industrial and office building in Boulder, Colo. HFF Director Zachary Kersten, Managing Director Jordan Angel and Senior Director Leon McBroom led the debt placement team representing the borrower’s asset manager, Manchester Capital Management, Charlottesville, Va. The property received a 10-year interest-only, fixed-rate loan. Proceeds from the commercial mortgage-backed securities loan refinanced the acquisition loan HFF secured for the borrower when it acquired the property in 2017.
Occupying 12 acres at 6265 Gunbarrel Avenue, the building is in the Gunbarrel Business Park 33 miles from downtown Denver. It was completed in 1969 and expanded in 2003 to include 152,700 square feet of office, warehouse and manufacturing space.
Kersten noted Manchester Capital Management stabilized the asset ahead of schedule.
