Tuesday, December 23, 2014

HFF arranges $118 million financing for Georgetown’s K2 high-rise residential tower in Chicago’s West Loop

K2, 34-story Class A residential tower, West Loop, Chicago, IL

Dan Kaufman

CHICAGO, IL – HFF announced it has arranged $118 million in financing for K2, a 34-story, 496-unit, Class A residential tower in Chicago’s West Loop that was recently acquired by The Georgetown Co., a leading developer and owner of properties nationwide.

                HFF worked on behalf of Georgetown to secure the 10-year, fixed-rate loan through Freddie Mac’s (Federal Home Loan Mortgage Corporation) CME Program.  The securitized loans will be serviced by HFF through its Freddie Mac Program Plus® Seller/Servicer program.

                K2 is located at 365 North Halsted Street in Chicago’s West Loop submarket immediately adjacent to Jewel-Osco’s flagship grocery store in downtown Chicago. 

The transit-oriented property also provides nearby access to the Ogilvie Transportation Center, Interstates 90/94, 290 and 55 and several CTA stations. 

Completed in 2013, the LEED Silver property features one-, two- and three-bedroom units averaging 779 square feet each.  The property, which reflects the very best in Chicago with respect to amenities and design, features a 10,000-square-foot outdoor deck and pool area including a 70-foot lap pool, hot tub, cabanas and fire pit. 

Other amenities include a state-of-the-art fitness facility, yoga studio, basketball court, lounge, party room, theater room and business center/boardroom.  The property is 96 percent leased.  Georgetown intends to make various improvements to the property including upgrades to public spaces and improved amenities.

“The West Loop is one of Chicago’s fastest growing residential, entertainment and employment centers.  The opportunity to participate in the growth and energy in the West Loop and Fulton Market districts attracted us to this property,” said Adam Flatto, CEO of The Georgetown Co. 

Steve Skok
“HFF has been a valuable partner in this process and we’re very pleased with the work they have done on our behalf.”

The HFF debt placement team representing the borrower was led by managing director Danny Kaufman, senior managing director Mike Kavanau and managing director Steve Skok. 

“HFF originally arranged the construction financing for K2 on behalf of Steve Fifield’s (of the Fifield Companies) development team.   K2 is a wonderful project and the West Loop location has outperformed any of our expectations. 

"  We are thrilled to be a part of The Georgetown Company’s acquisition of K2.  The Georgetown team brings world class real estate experience and will certainly improve this institutional quality project,” said Kaufman.

Adam Flatto
The Georgetown Co. is a privately-held diversified real estate development company founded by Marshall Rose in 1978 and headquartered in New York City. 

Georgetown and its principals have developed, owned and overseen more than 20-million square feet of office, residential, retail, and mixed-use properties throughout the United States. Georgetown currently owns and is developing properties in New York City, Los Angeles, Chicago, Columbus, OH, Boston and Washington DC.

For a complete copy of the company’s news release, please contact:

Olivia Hennessey
Public Relations Coordinator
HFF | 9 Greenway Plaza, Suite 700 | Houston, TX 77046
tel 713.852.3403 | fax 713.527.8725 | www.hfflp.com

HFF closes $120 million sale of The Crest at Fort Lee in Fort Lee, NJ

The Crest at Fort Lee Apartments, Fort Lee, NJ

Jose Cruz

FLORHAM PARK, NJ – HFF announced it has closed the $120 million sale of The Crest at Fort Lee, a 351-unit multi-housing community in Fort Lee, New Jersey.

HFF marketed the property on behalf of the seller, Capri Capital Partners, LLC.  Pantzer Properties purchased the asset for $120 million, or approximately $341,880 per unit, free and clear of any existing debt.

The Crest at Fort Lee is situated on 13.09 acres at 900 Crest Lane in eastern Bergen County and is minutes from the New Jersey Turnpike/George Washington Bridge as well as nearby shopping and dining. 

The gated property, built in 1999, is 96 percent leased and has a mixture of one-, two- and three-bedroom floor plans averaging 1,058 square feet each.  

The property consists of seven residential buildings that include garage parking, tenant storage, balconies and some renovated units.

Kevin O'Hearn
 Community amenities include a clubhouse with heated outdoor swimming pool, state-of-the-art fitness center, indoor basketball court, community room and business center.  The property also has a playground and grilling area.

The HFF investment sales team representing the seller was led by senior managing director Jose Cruz, managing director Kevin O’Hearn, associate director Steve Simonelli and was supported by senior managing director Andrew Scandalios.

Hyland Levin LLP served as legal counsel for the buyer and Krawnow Saunders, Kaplan & Beninati LLP represented the seller.

“The buyer has an opportunity to add value to the property in a market that is seeing new development and higher rents,” stated Cruz.

Steve Simonelli
Capri Capital Partners, LLC is an SEC registered institutional real estate investment advisory firm, which has acquired or originated over $10 billion in commercial real estate investments since its founding in 1992.  

Capri offers a broad spectrum of real estate equity and debt products to its clients through separate account, commingled fund, and joint venture formats. 

Over its 21 year history, Capri has demonstrated experience investing in multifamily residential and urban investments.  Diversified assets managed on behalf of its pension fund and other institutional investors totaled $3.886 billion under management as of September 30, 2014. 

 Capri is headquartered in Chicago, with additional offices in Los Angeles and the New York area.

 For more information, visit the company’s website: www.capricapital.com.

Andrew Scandalios
Pantzer Properties, Inc. was founded in 1971 as a vehicle for private investment in undervalued real estate.  With approximately $2 billion in assets under management, the firm is the sponsor of the Panco Strategic Real Estate Funds, a series of opportunistic real estate funds focused on the multifamily sector.  

Headquartered in New York City with offices in Rochelle Park, New Jersey and Herndon, Virginia, the firm is a fully integrated owner/operator of institutional quality properties on the east coast of the United States.

 Since its inception, Pantzer Properties has been involved in more than $5 billion of real estate transactions. www.pantzerproperties.com

For a complete copy of the company’s news release, please contact:

Olivia Hennessey
Public Relations Coordinator
HFF | 9 Greenway Plaza, Suite 700 | Houston, TX 77046
tel 713.852.3403 | fax 713.527.8725 | www.hfflp.com

BB&T Headquarters in Winston-Salem, NC Acquired for $60 Million

Tyson 'Ty' Rhame
Atlanta, GA, Dec. 23, 2014 -- Two investors have acquired the BB&T headquarters building in Winston-Salem N.C. in a $60 million acquisition.

 Charlotte, N.C. investor Ray Gee and Atlanta investor Tyson “Ty” Rhame partnered to acquire the 240,000 square foot, 20-story office tower as a long-term hold. BB&T Bank (Branch Banking & Trust), one of the largest financial services holding companies in the U.S., occupies the building under a long-term triple net lease.

Gvest Capital and Trinvest were the investment vehicles for Gee and Rhame, respectively. Inland Private Capital was the seller. The transaction closed Dec. 19.

At $250 a square foot, it is the highest per-square-foot price ever paid for a Winston-Salem office property. The property is expected to produce an annual return of about 7.25% before debt but after expenses.

Gee and Rhame acquired the asset under a leveraged transaction using a Delaware statutory trust structure. The buyers are selling stakes in the building to investors seeking a 1031 exchange transaction, which lets investors delay capital gains taxes on proceeds from recently-sold property by reinvesting in new property.

Raymond M. Gee
The building was attractive to the buyers because it is occupied through a 23-year lease signed with BB&T, a S&P creditworthy A-rated tenant. The new owners stated this is the last time the property will be sold.

“It is a generational investment for my family office,” Rhame said. “Being part of BB&T and Winston-Salem is a winning combination.”

“The long-term credit lease of BB&T in an attractive capital market provided the opportunity to create an investment product attractive to zero-cash-flow buyers with a low basis in the 1031 exchange market,” Gee added.

Based in Winston-Salem, N.C., BB&T operates 1,842 financial centers in 12 states and Washington, D.C.

Gvest Capital, LLC, (http://gvestcapital.com) is a closely-held investment partnership that focuses on the acquisition, development and asset management of commercial, multifamily and single-family residential real estate assets. 

Based in Charlotte, N.C., its leadership includes experienced veterans of the real estate and financial world.

Trinvest is the real estate arm of Atlanta investor, philanthropist and environmentalist Ty Rhame’s many enterprises.

 Rhame owns, or co-owns, a number of firms in a variety of industries including recycling, currency exchange, apparel, and many others. 

Recently appointed to the board of the U.S. Air Force Academy Endowment, he gives back to the community through his businesses, personally, and as president of the Rhame Family Foundation.

For a complete copy of the company’s news release, please contact:

Terri Thornton, Terri@TerriThornton.com, 404-932-4347