Monday, May 7, 2018

HFF announces $69.25M sale and $51.5 Million financing of 9171 Wilshire in Beverly Hills, CA

9171 Wilshire Drive, Beverly Hills, CA

Andrew Harper
LOS ANGELES, CA –– HFF announces the $69.25 million sale and $51.5 million financing of 9171 Wilshire Drive, a 106,890-square-foot office building in Beverly Hills, California.

The HFF team represented the seller, and procured the buyer, a joint venture between Cruzan and Cigna Investment Management.  Additionally, the HFF team worked on behalf of the buyer to secure the acquisition loan through Mesa West Capital.   

9171 Wilshire is located along one of the city’s busiest thoroughfares centrally located between Downtown LA, Hollywood, Century City and West Los Angeles. 

 The property is in close proximity to the Golden Triangle, a premier tourist destination defined by high-street retail along Rodeo Drive, upscale dining and luxury hotels.
Todd Sugimoto

  Additionally, 9171 Wilshire is easily accessible to the 405 and 10 Freeways and will be served by the future Metro Purple Line Extension.  The six-story office building is 83 percent leased to a mix of entertainment, financial, legal and real estate tenants, including Avalon Holdings, Kaplan Perrone Entertainment and Mejia & Kaplan. 

Cruzan plans to substantially renovate the entire building with the hope of capitalizing on the strength of the Beverly Hills office submarket.

While the scope of work is still being finalized, it is likely to include a new building lobby, new multi-tenant corridors and restrooms, and addition of a shared amenity space. The new ownership also plans to transform the current vacancies into contemporary work spaces, catering to companies that are seeking to retain and recruit top talent.

Steven Paskover
The HFF investment advisory team representing the seller consisted of managing director Andrew Harper, associate Matthew Fisher and Ryan Gallagher.

HFF’s debt placement team representing the borrower included senior managing director Paul Brindley, managing director Todd Sugimoto, director Steven Paskover and associate Ryan Ash.

“This was an extremely rare opportunity to acquire an asset with significant upside in one of the most sought after core markets in the world,” said Harper.

Holliday GP Corp. ("HFF") is a real estate broker licensed with the California Department of Real Estate, License Number 01385740.

For more information, please contact:

HFF Director, 
Public Relations
(617) 338-0990

HFF announces $144 Million financing of four-building Class A office campus in Orange County, CA

Four-building, mid-rise Class A office campus, Irvine, CA

Kevin MacKenzie
NEWPORT BEACH, CA –– 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. 

John Chun
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. 

Jamie Kline
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.

Peter Thompson
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.

For more information, please contact:

HFF Director, 
Public Relations
(617) 338-0990