HFF Announces $144M Financing of Four-Building Class A Office Campus in Orange County, California
May 07 2018 - 5:45AM
Business Wire
HFF announces $144 million in financing for Intersect, a
four-building, mid-rise, Class A office campus totaling 452,203
square feet in Irvine, California.
The HFF team worked on behalf of the borrower, a joint venture
between a leading global investment management firm and Hines, to
secure the three-year plus extension options, floating-rate loan
through New York Life Insurance. Loan proceeds will be used to
retire existing debt and fund the remaining lease-up of the
property.
Intersect comprises Buildings A, B, C and D, located at 17875
and 17877 Von Karman Avenue and 17872 and 17838 Gillette Avenue
respectively in the core Airport-area submarket of Orange County.
The 15.05-acre site is situated at the high-profile intersection of
Main Street and Von Karman Avenue in the heart of the Irvine
Business Complex just two blocks north of Interstate 405. Intersect
is surrounded by a robust amenity base of retail, restaurants and
entertainment offerings, including Irvine Concourse directly across
the street, Park Place, South Coast Plaza, The District, Fashion
Island, as well as the Tustin Legacy project currently under
development. Since 2015, the property has undergone a complete
renovation with improvements to the interior and exterior as well
as the addition of a new state-of-the-art restaurant, and the
addition of micro-retail shipping containers that will serve
grab-n-go coffee, juice and food throughout the day. Additional
market leading amenities at Intersect include indoor and outdoor
workspaces, a 6,000-square-foot indoor/outdoor gym, private tenant
terraces, a 100-plus seat stadium-style conference center, a
20-plus person board room and an outdoor game pavilion. Intersect
also features an above average parking ratio of 4.4 spaces per
1,000 usable square feet through a combination of surface parking,
a 1,583-space structured parking garage at 17892 Gillette Avenue
and a 177-stall subterranean parking facility.
The HFF debt placement team representing the borrower included
executive managing director Kevin MacKenzie, senior director John
Chun, director Jamie Kline, and associate Peter Thompson.
The HFF investment advisory team assisting in the transaction
included Michael Leggett and Dereck Barker.
Kevin MacKenzie described the deal as “a great example of a
sponsor strategically managing their business plan to take
advantage of capital market dynamics. By working together with our
Investment Advisory team to establish value, and then structuring
the financing offer properly based on current metrics in the debt
markets, the sponsor was able to partially re-capitalize the asset
mid-way through the business plan while significantly reducing
their cost of capital. Hines and NY Life were excellent to work
with throughout the process.”
Holliday GP Corp. ("HFF") is a real estate broker licensed with
the California Department of Real Estate, License Number
01385740.
About Hines
Hines is a privately owned global real estate investment firm
founded in 1957 with locations in 192 cities in 20 countries. Hines
has $93.2 billion of assets under management, including $47.9
billion for which Hines provides fiduciary investment management
services, and $45.3 billion for which Hines provides third-party
property-level services. Hines has 105 developments currently
underway around the world, and historically, has developed,
redeveloped or acquired 1,180 properties, totaling over 379 million
square feet. The firm’s current property and asset management
portfolio includes 483 properties, representing over 199 million
square feet. With extensive experience in investments across the
risk spectrum and all property types, and a pioneering commitment
to sustainability, Hines is one of the largest and most respected
real estate organizations in the world. Visit hines.com for more
information.
About HFF
HFF and its affiliates operate out of 26 offices and are a
leading provider of commercial real estate and capital markets
services to the global commercial real estate industry. HFF,
together with its affiliates, offers clients a fully integrated
capital markets platform, including debt placement, investment
advisory, equity placement, funds marketing, M&A and corporate
advisory, loan sales and loan servicing. HFF, HFF Real Estate
Limited, HFF Securities L.P. and HFF Securities Limited are owned
by HFF, Inc. (NYSE: HF). For more information, please visit
hfflp.com or follow HFF on Twitter @HFF.
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version on businesswire.com: https://www.businesswire.com/news/home/20180507005165/en/
HFFKEVIN MACKENZIE, (949) 253-8800Ca. Lic.
#01898953HFF Executive Managing
Directorkmackenzie@hfflp.comorJOHN CHUN, (949) 253-8800Ca.
Lic. #01904323HFF Senior Directorjchun@hfflp.comorKRISTEN
MURPHY, (617) 338-0990HFF Director, Public
Relationskrmurphy@hfflp.com
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