Done Deals: HFF secures $154.7 million in joint venture equity and construction financing for Class A office development in Redmond, WA

Tuesday, June 18, 2019

HFF secures $154.7 million in joint venture equity and construction financing for Class A office development in Redmond, WA

One Esterra Park, a transit-oriented, Class A office development adjacent to Microsoft’s world headquarters in Redmond, WA

Ben Bullock

SAN FRANCISCO, CA –– Holliday Fenoglio Fowler, L.P. (HFF) announces that it has secured joint venture equity and construction financing totaling $154.7 million for the development of One Esterra Park, a transit-oriented, Class A office development located adjacent to Microsoft’s world headquarters in Redmond, Washington.

Working on behalf of Capstone Partners, LLC, HFF sourced equity capital from an institutional investor and then on behalf of the joint venture secured the construction loan with US Bank.

Charles Halladay

The project is the next phase of the three million-square-foot Esterra Park live-work-play master planned community in suburban Seattle.

With an estimated completion in fourth quarter 2020, One Esterra Park will offer 245,000 square feet of Class A office space in a six-story building designed with technology tenants in mind.

The property is being built to LEED Silver standards and will feature average floor plates of 40,000 square feet, robust amounts of power and mechanical infrastructure and collaborative common areas that will foster innovation and productivity.

Bruce Ganong

One Esterra Park is positioned on a 2.2-acre site at 15550 NE Turing Street immediately adjacent to the world headquarters of Microsoft and near many of the area’s large and expanding economic drivers such as Facebook, Amazon and Google.

Additionally, the project is adjacent to the future Overlake Village Transit Station and the future State Route 520 off-ramp providing connectivity to major area thoroughfares, including Interstates 405 and 90.

The HFF debt and equity placement team included Ben Bullock, Charles Halladay, Bruce Ganong, Zach Goodwin, Michael Leggett and Tom Wilson.

Zack Goodwin

“It was exciting to be part of the final phase of such a transformative multi-phased mixed-use development,” Bullock said.

About Capstone Partners

Formed in 2002, Capstone Partners plans, finances, implements and manages commercial real estate investments for investors and organizations in the Pacific Northwest and is one of the most active developers in the region with offices in both Seattle and Portland.

Michael Leggett

Capstone has completed more than $1.5 billion of office, multifamily, industrial and retail developments representing over six million square feet and 2,500 multifamily units to date, with over $400 million of office, apartment and industrial projects in Seattle and Portland markets
underway.