Wednesday, April 4, 2018

Hold-Thyssen and Counsel Square I Awarded Bid for 8-Year Lease to State of Florida Dept of Corrections

Carol L. Kinnard

New Port Richey, FL --- Hold-Thyssen, LLC, a full service commercial real estate firm with offices in Clearwater and Winter Park, recently closed on an eight-year lease agreement with the State of Florida Department of Corrections at Counsel Square I, 7619 Little Road in New Port Richey.   

Carol L. Kinnard, transaction specialist at Hold-Thyssen, said the State of Florida Department of Corrections sent area landlords an invitation to negotiate.  Kinnard responded on behalf of the owners of Counsel Square who were awarded the bid for an eight-year lease of 9,487 square feet. 

In addition, Psychological Management Group, PA, a tenant at Counsel Square since 1999 providing mental health services to individuals and families in the Tampa Bay area, renewed their lease of Suite 325C with 1,000 square feet.     

Hold-Thyssen provides commercial property brokerage and leasing and management services to institutional and private investor clients nationwide.  The 40-year old firm’s current portfolio includes more than 100 commercial properties throughout the United States.

For more information, please contact:

Larry Vershel or Beth Payan, Larry Vershel Communications Inc. 407-644-4142

HFF announces sale and financing of Loop Central office complex in Houston, TX

Loop Central Office Complex, Houston, TX

Jeff Hollinden
HOUSTON, TX, April 4, 2018 – HFF announces the sale and acquisition financing of Loop Central, a three-building, Class A office complex totaling 574,944 square feet in Houston, Texas.

The HFF team represented the seller, TIER REIT, and procured the buyer, Griffin Partners.  Additionally, the HFF team worked on behalf of Griffin to secure the five-year, floating-rate acquisition loan through Global Atlantic Financial Group and source their equity partner, Wheelock Street Capital.

Loop Central is located at 4848 Loop Central Drive at the intersection of two of Houston’s major thoroughfares, Loop 610 and U.S Highway 59. 

 Its location within the Bellaire/Medical Center submarket places it within close proximity to the Galleria, Greenway Plaza and some of Houston’s most affluent residential neighborhoods, including River Oaks, West University, Tanglewood and The Villages. 

Wally Reid
 It also has frontage along the Westpark Tollway, providing both visibility and express vehicular access to Houston’s western suburbs.  The property comprises Loop Central 1, 2 and 3, which are 86.9 percent leased to 24 tenants, and three parking garages that offer 2,327 parking spaces.

  Griffin Partners and Wheelock will execute a proactive capital improvement plan to update the assets visibility, as well as add various new amenities, which will maximize the tenant experience.  A few additions include a new conference and fitness facility, new food options and capitalizing on the existing park-like setting with new outdoor area seating and amenities for tenants to enjoy.

Andrew Montgomery
HFF’s investment advisory and debt and equity placement teams included senior managing directors Jeff Hollinden and Wally Reid and senior director Cameron Cureton.

“This is the latest example of an informed investor recognizing the inherent value represented by Houston office market,” said Hollinden.  “Sales activity in the office sector has picked up dramatically over the past twelve months, signaling a return to healthy liquidity in the Houston market.”

“We think Loop Central is a unique and timely investment considering Houston’s office and capital market environment,” said Andrew Montgomery of Griffin Partners. “Houston’s overall resiliency and recent bounce highlighted by the latest job performance numbers is a lead indicator and an early preview for continued momentum in the Houston office market.” 

Holliday GP Corp. (“HFF”) is a Texas licensed real estate broker.

For more information, please contact:

HFF Director, Public Relations
(617) 848-1572

 follow HFF on Twitter @HFF or call 972.483.2400.

George Smith Partners Secures $18 Million in Acquisition Financing for Orange County, CA Office Portfolio

Alina Mardesich

ORANGE COUNTY, CA (April 4, 2018) – George Smith Partners, one of the nation’s leading commercial real estate capital markets advisors, has successfully arranged $18,032,000 in non-recourse acquisition/bridge financing for a portfolio of multi-tenant office properties in Orange County, California on behalf of the Sponsor, a full-service commercial real estate investment and operating company based in Orange County, CA.
The financing was arranged by George Smith Partners’ Senior Vice President Alina Mardesich and Assistant Vice President Joseph P. Cannizzaro II.
“This portfolio represents a rare value-add opportunity in the tightening Orange County office market,” says Mardesich. “With office occupancy rates steadily rising and asset prices reaching new highs, many investors are looking toward both mid-rise and cost effective low-rise properties. The opportunity to acquire and improve a portfolio of under-performing assets is well-timed by the Sponsor.”
The overall portfolio is currently 85-percent occupied, and located in the cities of Santa Ana, Anaheim and Lake Forest.

Joseph P. Cannizarro II
“By capitalizing on the strength of the market, the value-add potential in the portfolio, and the Sponsor’s solid expertise, we were able to successfully secure competitive financing that met the needs of the borrower and the lender,” explains Mardesich.

The portfolio includes four newly-acquired office properties along with a fifth office building already owned by the Sponsor. Loan proceeds will be used to strategically renovate and reposition the assets and maximize the value of the portfolio, driving yields for the Sponsor and its investors.
George Smith Partners secured the loan at a rate of 3.75% + one-month LIBOR for a term of three years with two one-year extension options. The non-recourse loan is interest-only during the initial term and then moves to an extended 30-year amortization schedule.
The loan was priced at 66-percent of cost and 53-percent of the asset’s stabilized value with favorable release pricing that allows for not only maximum refinance/exit opportunities but also returns.

For more information, please contact:
Jordan Kruk /Lexi Astfalk
Brower Group
(949) 955-7940

BKM Enters Denver Market with $20 Million Acquisition of Value-Add 215,000-SF Multi-Tenant Industrial Park

Brian Malliet
            DENVER,CO BKM Capital Partners, an institutional fund manager with a niche focus on value-add, multi-tenant light industrial investments, has acquired Inverness Business Park, a Class A, 215,268 square-foot, eight-building industrial asset for $20,200,000, reflecting a 57-percent discount to replacement cost, according to Brian Malliet, CEO of BKM Capital Partners. This is BKM’s first acquisition in the Denver, Colorado market.
“Denver is a dynamic market with strong fundamentals and tremendous growth potential,” states Malliet. “The property is situated in the the affluent area of Englewood, within the Southeast submarket, which is the largest in the Denver metro area. This provides access to a strong base of potential tenants in various business sectors.”

Inverness Business Park, Englewood submarket, Denver, CO

Inverness Business Park is situated within a 980-acre high image master plan anchored by major companies such as Boeing and Comcast. The property fronts Inverness Golf Course and is readily accessible from Interstate 25, the major north-south transportation corridor that runs through the heart of Denver.  The asset is 91-percent occupied by 86 tenants averaging approximately 2,750 square feet, according to Malliet.
“This acquisition is well-aligned with our ongoing investment strategy, which is to identify extremely well-located, institutional quality industrial assets with a value-add opportunity,” says Malliet.  “Drawing upon our in-house management platform and niche expertise in multi-tenant industrial, we will be able to quickly improve the asset and bringing rents to market, generating strong yields for investors.”
BKM plans to invest nearly $2 million in upgrades to the asset, including a complete rebrand to reintroduce the asset to the market, as well as fresh paint, upgraded landscaping, cosmetic upgrades to the lobby and signage, and various structural improvements, such as improved roofing, parking surfaces, and HVAC.

Brett Turner

“There is an immediate opportunity to increase NOI in this asset by leveraging current demand from image-conscious tenants seeking a location near major regional anchors such as the Denver Tech Center,” says Brett Turner, the Director of Acquisitions. “As we execute on our strategy, we will be able to quickly improve operational efficiencies and maximize the value of this multi-tenant industrial asset.  Moving forward, we are seeking additional assets in the Denver metro area in order to continue to build value and increase economies of scale.”
            BKM Capital Partners acquired Inverness Business Park from a private family office.  Newmark Knight Frank represented the seller in the transaction. BKM was not represented.
            The property is located at 14 Inverness Drive East in Englewood, Colorado.
For more information, please contact:
Jordan Kruk /Lexi Astfalk
Brower Group
(949) 955-7940