Wednesday, August 20, 2014

Passco Companies Forms Joint Venture with InSite Investment Realty to Acquire 270-Unit Multifamily Community in Tempe, AZ for $25 Million

Ovation at Tempe, AZ Apartments
TEMPE, AZ – Passco InSite, LLC,  a joint venture between Passco Companies, LLC and InSite Investment Realty, has acquired the 270-unit Class B garden-style multifamily community Ovation at Tempe for $25.85 million.

According to Bill Passo, CEO and Founder of Passco Companies, this new joint venture is an extension of a 20-year relationship with long-standing track record, market expertise and multifamily investment experience.

According to Passo, investors will have the opportunity to invest in the Ovation at Tempe property through crowdfunding, as well as through the broker-dealer community.

Bill Passo
“This is a strong, value-add investment opportunity in a market that is in a proven recovery,” explained Passo. 

“The Tempe submarket posted positive absorption and a low 3.7 percent vacancy in the first quarter of 2014, and a 3.5 percent rental growth is forecasted by the end of the year.”

In addition, Tempe’s market fundamentals are rebounding rapidly according to Passo, who noted that the state of Arizona is on track to rank first in the nation in future job growth, projecting a three percent rise annually over the next five years.

“This projected job growth will drive deep demand for quality housing, which will bolster the profitability of this investment over our hold period,” he explained.

The Passco InSite partnership plans to hold the property for three years.  Under this ownership, value-add improvements will be implemented, which will drive rent growth for the asset, according to Passo. 

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

Corynne Randel / Jenn Quader
Brower, Miller & Cole
(949) 955-7940

HFF closes $21.1 million sale of Class A office building in downtown Portland, OR

Nick Kucha
PORTLAND, OR – HFF announced it has closed the $21.1 million sale of the Executive Building, an 11-story, Class A office building totaling 104,630 square feet in downtown Portland.

                HFF marketed the property on behalf of the seller, The Matteson Companies.  Swift Realty Partners purchased the asset for $21.1 million contingent to existing debt. 

The Executive Building is situated on 0.23 acres at 811 SW 6th Avenue at the intersection of Portland’s main MAX light rail lines and near Interstates 5 and 84 and Highway 26. 

The property is also near amenities such as the Pioneer Place Shopping Center, The Nines Hotel and several other dining, retail and entertainment venues.  

The property is 91.4 percent leased to three tenants, including J.P. Morgan Chase and the State of Oregon Department of Environmental Quality (DEQ).

The HFF team was led by director Nick Kucha and senior managing director and co-head of HFF’s national office investment sales platform Michael Leggett.

Michael Leggett
The Matteson Companies are a group of affiliated entities engaged in real estate investment and management, headquartered on the San Francisco Peninsula with operations in diverse western U.S. markets. 

  The companies' capabilities include property acquisitions, value-added asset management, high quality property management and construction management for renovations and capital projects in the managed portfolio.  

With a regional asset and property management team, The Matteson Companies manage an extensive portfolio of properties throughout the West that includes multifamily, office, retail and mixed-use property types.  The properties are located throughout the western U.S., California, Arizona, Oregon and Washington.

Swift Real Estate Partners is an independent and vertically integrated real estate investment firm which seeks to generate attractive risk-adjusted returns for its investors.  Learn more at

 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 |

HFF closes sale of luxury boutique hotel in Fort Lauderdale, FL

Il Lugano Hotel, 3333 NE 32nd Avenue, Fort Lauderdale, FL
MIAMI, FL – HFF announced it has closed the sale of il Lugano, a 105-suite luxury boutique hotel on the Intracoastal Waterway in Fort Lauderdale, Florida. 

HFF marketed the property on behalf of the seller, Il Lugano, LLC.  An affiliate of Claremont Companies of Bridgewater, Massachusetts purchased the offering on an all-cash basis and closed within 45 days of contract execution.

                The property is located at 3333 NE 32nd Avenue with direct water frontage on the Intracoastal Waterway and within walking distance of the Atlantic Ocean. 

Completed in 2008, the property features 105 oversized hotel suites, da Campo Osteria restaurant, lobby bar, outdoor event patio and approximately 4,000 square feet of meeting space.

 Additional amenities include an outdoor resort pool and sun deck, fitness center, 10-slip private marina, adjacent water taxi station and private parking garage.  The building also houses 23 luxury residences with private elevators that were previously sold and not included in the offering. 

Max Comess
The property boasts modern architecture and notable design, including Dale Chihuly sculptures and chandeliers throughout the lobby.

                The HFF investment sales team representing the seller was led by director Max Comess, senior managing director Daniel C. Peek, managing director Denny Meikleham, and real estate analysts Scott Wadler, Alexandra Lalos and Cecily Nazario.

“We commend the buyer and seller for a strong execution on this complicated transaction,” Comess said.  “The sale of il Lugano is another example of the northward momentum of the Fort Lauderdale Beach hotel market with savvy investors now targeting the area north of Sunrise Boulevard up to Lauderdale by the Sea and Pompano Beach.”

“The opportunity to acquire resort hotels in Florida and around the country continues to attract record interest from investors across the globe,” Peek added. 

  “Fundamental performance and the availability of capital in this sector continue to accelerate and surpass previous peak levels, amid a generational low in terms of new competitive supply.”

Daniel C. Peek
                HFF’s Hotel Group has been active in the sale and financing of similar hotels across the country with a focused concentration in South Florida.

  In the first half of 2014, the firm financed or sold 44 hotels and resorts with total transaction volume totaling nearly $1.2 billion, making it the fastest growing hotel group among all major firms tracked by Real Estate Alert.  

The sale of il Lugano comes on the heels of three other notable Broward County hotel sales closed by HFF this year: the Sheraton at Fort Lauderdale Airport and Cruise Port, the DoubleTree Sunrise at Sawgrass Mills and the Holiday Inn Express in Plantation.

                Il Lugano, LLC is owned by the SageCrest Liquidating Trust which is being managed by the Liquidating Trustee, John D. Huber, a managing director at SOLIC Capital Advisors.

Danny Meikleham
Headquartered at Lakeshore Center in Bridgewater, Massachusetts, Claremont Companies is a privately-owned and closely-held real estate investment, development and asset management firm.  

The company was started in 1968 when Patrick Carney, Claremont’s current chairman and CEO, began investing in and developing residential multi-family properties in southeastern Massachusetts.  

Today, Claremont Companies is actively pursuing new acquisitions and is focused on both existing properties and development opportunities within the multifamily, hotel, and mixed-use asset classes.  Learn more at

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 |

HFF arranges $21 million refinancing for Los Angeles grocery-anchored retail center

Peter Smyslowski
SAN FRANCISCO, CA – HFF announced it has arranged a $21 million refinancing for Western Plaza, a 115,341-square-foot, grocery-anchored retail center in Los Angeles, California.

               Working on behalf of Western Avenue Capital, LLC (Western Avenue) HFF placed the 10-year, fixed-rate loan with its correspondent lender, Nationwide Life Insurance Company.

  Loan proceeds were used to refinance existing short-term debt procured by HFF in 2012 while Western Avenue implemented its business plan. The fixed-rate loan carried a three-year, interest-only period as well as an open prepayment option in the final three years of the loan term.

               Acquired by Western Avenue in 2012, Western Plaza is situated on 6.85 acres at 1645-1717 Western Avenue at the southwest corner of Venice Boulevard and Western Avenue in Los Angeles.

Jeff Sause
 The retail center is less than one quarter mile north of Interstate 10 with a population of more than 600,000 residents within a three-mile radius.  The center is 100 percent leased to national and regional tenants including Food 4 Less, CVS, Factory 2U, Anna’s Linens and Carl’s Jr, some of whom are on long term leases negotiated by Western Avenue. 

               The HFF team representing the borrower was led by managing director Peter Smyslowski, associate director Jeff Sause and associate Walter Chui.

“Western Plaza is the epitome of an infill location as evidenced by a top performing Food 4 Less,” Smyslowski says.

Western Avenue Capital is a real estate investment, development and management company headquartered in Los Angeles, California. 

  Over the past 40 years, its predecessor companies have established a diversified portfolio of retail, healthcare, multifamily and industrial properties across the United States, with the majority of assets in the Los Angeles MSA. Western Avenue’s total portfolio capitalization (managed and passive) currently exceeds $1 billion across 3 million square feet.  Learn more at

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

Kristen M. Murphy
Associate Director
HFF | One Post Office Square, Suite 3500 | Boston, MA 02109
Main: 617-338-0990 | Direct: 617-848-1572 | Cell: 617-543-4873 |

HFF arranges financing for four-property, multi-state hotel portfolio

Brian Carlton
DALLAS, TX – HFF announced it has arranged financing for a four-property hotel portfolio with assets in California, Colorado and Nevada.

Working on behalf of the borrower, InterMountain Management, HFF placed the 10-year, fixed-rate loan with Redwood Trust. 

               The portfolio consists of 449 rooms, which includes the 126-room Hyatt Place and 96-room Homewood Suites located in Reno, Nevada; a 99-room Homewood Suites located in Fort Collins, Colorado; and a 128-room Homewood Suites located in Palm Desert, California. 

The Hyatt Place, which opened in 2009, is located at 1790 East Plumb Lane in Reno and contains 1,800 square feet of meeting space, a 24-hour fitness center, indoor heated pool, outdoor hot tub spa and self-service check-in and check-out kiosks.

 Also in Reno is the Homewood Suites, which was completed in 2008 and contains 1,201 square feet of meeting space in addition to a fitness room, indoor pool and whirlpool, outdoor hot tub and business center. 

John Bourret
It is located at 5450 Kietzke Lane.  The Homewood Suites Fort Collins, located at 1521 Oakridge Drive, was completed in 2007 and features 988 square feet of meeting space, a fitness room, basketball court, pool, tennis court and pool table.

 Completed in 2009, the Homewood Suites Palm Desert is located at 36999 Cook Street and has a basketball court, putting green, pool, fitness room and 1,200 square feet of meeting space. 

               The HFF debt placement team representing the borrower was led by senior managing director Brian Carlton and managing director John Bourret.

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

Kristen M. Murphy
Associate Director
HFF | One Post Office Square, Suite 3500 | Boston, MA 02109
Main: 617-338-0990 | Direct: 617-848-1572 | Cell: 617-543-4873 |

HFF secures combined $10.4 million in financing for CURO Enterprises in Marlborough, MA

Greg Labine
BOSTON, MA – HFF announced it has secured $10.4 million in combined financing for 130 Lizotte Drive, a 100,000-square-foot office building in Marlborough, Massachusetts, and 118 Turnpike Road, an 80,000-square-foot office building in Southborough, Massachusetts.

               Working on behalf of private investor CURO Enterprises, HFF placed the loans with Blue Hills Bank.  Loan proceeds were used to acquire the properties.  Both loans were structured as floating-rate loans that were swapped to a fixed-rate.

               130 Lizotte Drive is located within the Lake Williams Corporate Center adjacent to the Interstate 495/Route 20 interchange in Marlborough, about 25 miles west of Boston.

 The property was completed in 1999 as a build-to-suit for its major tenant, Acosta, Inc., a national full-service sales and marketing agency.  Currently, the facility is 92 percent leased to Acosta and Career Arc Group.  Amenities at the property include multiple conference facilities and shower facilities.

               118 Turnpike Road is situated along Route 9 just under two miles from The Massachusetts Turnpike/I-90 and about 25 miles west of Boston in Southborough.  The three-story property was originally built in 1989 for its prior tenant, Autonomy Corporation, a wholly-owned entity of Hewlett-Packard. 

               The HFF debt placement team representing the borrower was led by managing director Greg LaBine with assistance from real estate analysts Brett Paulsrud and Martha Nay.

               “These acquisitions represent two of the three CURO acquisitions in the Interstate 495/Mass Pike corridor within the past year,” said LaBine.  “Blue Hills Bank has been their finance partner on all three deals, a shining example that relationships are still of paramount importance within the banking community today.”

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

Kristen M. Murphy
Associate Director
HFF | One Post Office Square, Suite 3500 | Boston, MA 02109
Main: 617-338-0990 | Direct: 617-848-1572 | Cell: 617-543-4873 |