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.



Tom Wilson




CONTACTS:

TOM WILSON
HFF Senior Managing Director
(503) 224-3311

BRUCE GANONG
HFF Senior Managing Director
(415) 276-6940

KRISTEN MURPHY
HFF Director, Public Relations
(617) 848-1572

HFF closes sale of Three-building industrial portfolio in northwest Houston, TX


Kempwood Tech Center includes three Class B flex industrial warehouse buildings totaling 113,117 square feet in Houston’s Northwest industrial submarket.

HOUSTON, TX –– HFF announces that it has closed the sale of Kempwood Tech Center, three Class B flex industrial warehouse buildings totaling 113,117 square feet in Houston’s Northwest industrial submarket.

HFF marketed the property in conjunction with Ten-X on behalf of the seller, special servicer LNR Partners, LLC.  CG7600 LP purchased the assets.

Martin Hogan
Situated on 7.18 acres at 2700-2778 Bingle Road, the portfolio is located at the signalized corner of Bingle and Kempwood Roads proximate to two of Houston’s busiest freeways, Interstate 10 and U.S. Highway 290. 

The portfolio is in Houston’s Northwest Industrial submarket, which is the largest submarket in Houston by square footage and home to the largest concentration of institutional ownership in the city. 

Home to two tenants, the one-story buildings feature between 14- and 16-foot clear heights, 30 grade-level loading doors and varying amount of office space.

The HFF investment advisory team representing the seller was led by senior director Martin Hogan and real estate analyst Charles Strauss.

“Kempwood Tech Center is an exceptional opportunity for an investor to reposition older assets in one of Houston’s largest and best-performing industrial submarkets,” Hogan said.

Charles Strauss
Scott Wilkerson, an in-house broker for Garver Real Estate, handled the acquisition for the buyers.

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

About Garver Real Estate 

Garver Real Estate is a privately owned real estate investment and management company.  The company was created by C.M. Garver, a Houston real estate broker and engineer. 

Mr. Garver has owned and operated a civil construction company BRH Garver Construction and has been a real estate investor for over 45 years. 


CONTACTS:

MARTIN HOGAN
TX Lic. #0538781
HFF Senior Director
(713) 852-3500

KIMBERLY STEELE
HFF Digital Content/Public Relations Specialist
(713) 852-3420


HFF closes sale of grocery-anchored retail center in suburban Baltimore, MD

Nottingham Commons, a 131,270-SF, fully leased,
core shopping center in Nottingham, MD
within the Washington-Baltimore metro area.


John Owendoff
WASHINGTON, DC –– Holliday Fenoglio Fowler, L.P. (HFF) announces that it has closed the sale of Nottingham Commons, a 131,270-square-foot, fully leased, core shopping center in Nottingham, Maryland, within the Washington-Baltimore metro area.

HFF marketed the property on behalf of the seller, Weingarten Realty Investors.  Frankel Properties purchased the asset and was assisted in the transaction by Willard Retail. 

Completed in 2016, Nottingham Commons is anchored by MOM’s Organic Market, T.J.Maxx, DSW, Petco and Five Below. 

Additionally, the center is home to an attractive line-up of food and service tenants, including Zo√ęs Kitchen, Nalley Fresh, Chipotle, Applebee’s, MyEyeDr., Massage Envy and AAA. 

Jordan Lex
Situated on 18.36 acres at the intersection of Campbell Boulevard at Franklin Square Drive, Nottingham Commons is in a dominant retail node just north of the Interstate 95/695 interchange. 

Within a three-mile radius of the center are more than 80,000 residents earning an average annual household income of nearly $94,000.

The HFF team representing the seller was led by managing director John Owendoff and senior director Jordan Lex.


CONTACTS:

JOHN OWENDOFF
MD Lic. #649573
HFF Managing Director
(484) 532-4200

JORDAN LEX
MD Lic. #647016
HFF Senior Director
(484) 532-4200

KIMBERLY STEELE
HFF Digital Content/Public Relations Specialist
(713) 852-3420


Primior’s First Harbor Plaza Development in Santa Ana, CA Opportunity Zone to Break Ground June 26

 
First Harbor Plaza development in Santa Ana, CA
 Breaks Ground June 26
  
NEWPORT BEACH, CA, June 18, 2019 – Primior, a leading real estate development and investment management firm, is scheduled to break ground on its First Harbor Plaza development in Santa Ana on Wed., June 26, 2019.

Two major tenants are already in place for the mixed-use project, Chase Bank and Optima Salon Suites.

At the intersection of N. Harbor Blvd. and W. 1st St., First Harbor Plaza is a 40,129-sq.-ft. restaurant, retail, office and medical property located in one of Santa Ana’s busiest areas with high traffic counts of some 71,000 cars daily.

Johnney Zhang
The surrounding area has a population of just over 784,000 within five miles. A key draw of the property is its location in a recently established Opportunity Zone.

“We are very pleased to be developing one of the first properties of this type in Santa Ana under this important program,” said Primior CEO Johnney Zhang.

“The positive impact this innovative financing model will have on the local community in terms of strong economic opportunities and an enhanced quality of life has led us to seek out areas where we can make a contribution.”

The Opportunity Zone program was created by the 2017 Tax Cuts & Jobs Act to revitalize economically distressed communities through private investment as opposed to taxpayer dollars. Opportunity Zones have now been designated in all 50 U.S. states, the District of Columbia and five U.S. possessions.

To motivate participation in the program, taxpayers investing in a Qualified Opportunity Zone via an Opportunity Fund can benefit from capital gains tax incentives available exclusively through the program. Moreover, in comparison to other programs that encourage private investment in low-income areas through tax advantages, the Opportunity Zone program is less restrictive, costly and reliant upon government agencies.


First Harbor Plaza includes two structures. Building 1 encompasses some 14,400 sq. ft. in two large anchor suites and five smaller spaces on the first floor, with the same configuration on the second floor. 

Chase Bank occupies the premium, first-floor corner space in that building. Building 2 includes approximately 3,880 sq. ft. on the first floor, two suites on the second floor totaling 3,778 sq. ft. and a third-floor suite of 3,778 sq. ft. to be occupied by Optima Salon Suites.

CONTACT

Rachel Reenders
KCOMM
949-443-9300

Daum Commercial Directs Sale of $8 million, 123,754-SF Industrial Asset in Phoenix, AZ


  • Trevor McKendry
    PHOENIX, AZ – DAUM Commercial Real Estate Services has completed the sale of a 123,754 square-foot industrial building in the Southwest submarket of Phoenix, Arizona on behalf of both the buyer, Exeter Property Group, and seller, David Turner International, LLC.
 The property was purchased for $8.16 million. The building is located at 4502 W. Monterosa Street in Phoenix, Arizona.

The buyer will benefit from the property’s long-term, in-place lease to a food processing and manufacturing tenant, as well as its location within the Southwest Valley submarket, which has seen sustained rent growth over the past several years, notes Trevor McKendry, a Vice President at DAUM Commercial, who completed the sale alongside DAUM First Vice President Chris Rogers.

“The industrial sector in Phoenix has experienced strong investor capital interest as the city continues to see a tremendous amount of economic, employment, and population growth,” says McKendry.

Chris Rogers
 “Through our long-standing connections and focus in the metro-Phoenix industrial market, we were able to secure the deal with Exeter, whose Phoenix industrial presence enabled them to quickly recognize the opportunity to acquire a property of this size off market.”

The Phoenix industrial market experienced a decrease in vacancy to 7.1 percent in Quarter 1, with an uptick in new construction deliveries, and very strong activity amongst all product and tenant types, notes Rogers, citing a recent DAUM report.

 This asset benefits from a prime location that offers convenient access to major freeways including I-10, I-17, U.S. 60, 101 FWY, and the South Mountain 202, which is currently under construction.

Rogers adds: “These route options ultimately provide shorter drive times to other major markets, and are considered a demand driver for the area. The property also benefits from features that are all synonymous with the functionalities of today’s user needs.”

The asset itself is situated on a fully paved 7.2-acre site and includes an air-conditioned warehouse, six dock-high and two grade-level doors, ample parking, and a clear height of 24 feet.

 
 Industrial building
 4502 West Monterosa Street,
Phoenix, AZ
About DAUM Commercial 

DAUM Commercial Real Estate Services is a leading provider of commercial real estate services including brokerage, tenant representation, consulting, leasing, sales and property management.

Founded in 1904, DAUM focuses on longstanding client relationships and draws upon its century-long track record to deliver steadfast insights and proven results to clients across the U.S. DAUM has ten offices throughout Southern California and Arizona. 


CONTACTS

Micaela Fehrenbach / Elisabeth Manville
Brower Group 
(949) 438-6262
mfehrenbach@brower-group.com