HFF secures $7.3 million refinancing for Inland Empire retail center in Moreno Valley, CA

Ironwood Plaza, Moreno Valley, CA

LOS ANGELES, CA –– Holliday Fenoglio Fowler, L.P. (HFF) announced it has secured a $7.3 million refinancing for Ironwood Plaza, a 56,289-square-foot retail property anchored by a 99 Cents Only Store in the Inland Empire community of Moreno Valley, California.

Working on behalf of the borrower, a private investor, HFF placed the 10-year, 4.80-percent, fixed-rate loan with a local bank.  Loan proceeds were used to pay off an existing CMBS loan and cover leasing and closing costs.  This was the borrower’s first loan with the bank. 

Jeff Sause

In addition to the 99 Cents Only Store, Ironwood Plaza is home to a variety of tenants, including Bank of America, Aqua Pura, Angela’s Nail Salon, Lorenzo’s Italian Restaurant and Video Vision. 

Situated on 4.5 acres at 23900 Ironwood Avenue, the two-building retail center is located at the southeast corner of Ironwood Avenue and Heacock Street less than one mile from State Road 61 in the Riverside submarket.

 Ironwood Plaza is in Moreno Valley, which anticipates a 4.65 percent population growth over the next five years in the areas surrounding the property.  Currently, there are more than 131,000 residents earning an annual average household income of $64,674 located within a three-mile radius of the center.

The HFF debt placement team representing the borrower was led by director Jeff Sause.

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

Kristen M. Murphy

Director, Marketing

HFF | One Post Office Square, Suite 3500 | Boston, MA 02109

Main: 617-338-0990 | Direct: 617-848-1572 | Cell: 617-543-4873 | www.hfflp.com

krmurphy@hfflp.com

HFF secures $14.14 million refinancing for DoubleTree hotel near Washington, D.C.

DoubleTree by Hilton Hotel Largo/Washington, DC

 CHICAGO, IL  – Holliday Fenoglio Fowler, L.P. (HFF) announced it has secured a $14.14 million refinancing for DoubleTree by Hilton Hotel Largo/Washington D.C., a 184-room, full-service hotel in the Washington, D.C. community of Largo, Maryland.

HFF worked on behalf of the borrower, Frontier Development & Hospitality Group, to secure the seven-year, 4.1-percent, fixed-rate, non-recourse loan through a financial institution. 

Nicole Schmidt

Loan proceeds were used to refinance an existing construction loan used to acquire, renovate and rebrand the hotel from a Radisson into a DoubleTree. The financing also enabled the release of excess land that had been encumbered by the previous loan.

Named the No. 1 hotel on TripAdvisor for the Largo market, the newly-renovated DoubleTree by Hilton Hotel Largo/Washington D.C. is the only Hilton-branded hotel in the Largo, Landover and Hyattsville business corridor. 

The six-story hotel features 2,700 square feet of meeting space; an indoor, heated swimming pool; fitness center; business center; market pantry and two food and beverage options, XC BAR & BISTRO and the SC LOUNGE.

 Situated at 9100 Basil Court in Largo, the hotel is located just off Landover Road, which provides easy access to Interstate 495 (the Capital Beltway).  The hotel is less than two miles from the Largo Town Center Metro station in the heart of Largo and proximate to FedEx Field.

Mark Remington

 The DoubleTree by Hilton Hotel Largo/Washington D.C. is in the northern part of Prince George’s County, which has more than 19.7 million square feet of office space. 

The HFF debt placement team representing the borrower was led by director Jeff Bucaro and real estate analyst Nicole Schmidt with assistance from managing director Mark Remington. 

“This was the second financing assignment that Jeff has closed for us, and, each time, he was able to obtain terms that were superior to the market,” said Frontier CEO Evens Charles.

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

Kristen M. Murphy

Director, Marketing

HFF | One Post Office Square, Suite 3500 | Boston, MA 02109

Main: 617-338-0990 | Direct: 617-848-1572 | Cell: 617-543-4873 | www.hfflp.com

krmurphy@hfflp.com

 http://frontier-development.com.

Meridian Buys 105,000 SF Office Building in San Mateo County, CA for $29 Million

  

1000 Marina, San Mateo County, CA

SAN RAMON, CA. – Meridian, a full-service office property developer in California, is pleased to announce the purchase of 1000 Marina, a six-story 105,000-square-foot office building in San Mateo County, Calif. 

The seller was TA Associates, a private equity firm based in Boston, Massachusetts. Meridian paid just under $29 million for the 90%-leased building located in the Sierra Point Submarket in the city of Brisbane.

The purchase closed in the final week of 2016 and represented Meridian’s second major office transaction in northern California since September when the firm sold The Atrium, a 77,000-square-foot office building in Pleasanton.

Dan Rosenbaum

According to Dan Rosenbaum, Meridian’s Senior Vice President of Acquisitions in northern California, 

“This acquisition represents our largest general office acquisition to date. The building is located in northern San Mateo County in a very vibrant sub-market. South San Francisco and Brisbane are  the epicenter of the biotech universe and we think that 1000 Marina will continue to benefit from that.”

Rosenbaum added, “Google, through its YouTube subsidiary, has purchased a tremendous amount of multi-tenant office space in San Bruno over the last year. As YouTube grows into those owned buildings, those displaced tenants will need to move somewhere.

“This was one of the drivers in our decision to buy this building. As is the case in most buildings that we buy, we will perform some significant upgrades to the building, including common areas and exterior gathering places. This purchase is consistent with our value-add approach towards general and medical office.

“We perceived that the in-place rents were below market and there were some aesthetic and livability upgrades to perform. While the building is not located within walking distance of public transportation, 1000 Marina has the Sierra Point Commuter Shuttle, which connects office workers to both BART and Cal-Train often and effectively.”

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

Anne Monaghan                                                           

Monaghan Communications                                     

830.997.0963                                                               

Real Estate Capital Institute Notes Mortgage Rates Shifted Upward for Nine Consecutive Weeks

Jeanne Peck

 Chicago, IL - Mortgage rates shifted upward for the

nine consecutive weeks.   The real estate capital markets welcome the new

year, anticipating additional rate hike throughout the year.  Last month's

25 basis point rate hike allowed the Fed dampen an improving economy backed

by steady employment growth.  This rate hike was the only one of the year

and second this decade.  Furthermore, the Fed published economic projections

revealing their desire to hike rates three more times in this new year.

Today's rate hike expectations have the following impact on capital markets:

Mortgage Rates:  Think "4%-handle" on any type of long-term debt, even at

lower leverage.  Current rates are at levels similar to the first quarter of

2014.  From a historical perspective, rates are within their lowest levels

of the past decade.  And spreads continue holding steady (or slightly

declining) depending upon individual lender appetite.  Most lenders have

reasonably robust funding objectives for this year, so pressure for tighter

spreads continues, especially for lower leverage and higher-quality CRE

financing opportunities.

Valuations:  A delicate balancing act of paying more for debt, but

potentially trading up for higher cash flow due to inflation keeps real

estate prices near peak levels.  Demand for credit-tenant, net-lease

properties via 1031 exchanges, as well as a limited supply of quality CRE

assets assures low capitalization rates within the current market cycle.

Alternatively, attractive purchase opportunities will emerge for those

properties requiring repositioning based upon fresh capital reflecting

higher rates than seen over the past few years.

Equity Risk:   Investors hope that Fed policies extend the currently

favorable economic cycle as long as reasonably possible, perhaps a couple

more years.  Recent business cycles (e.g., The Great Recession) created

overheated conditions with punishing results afterwards.  In the current

cycle, slightly higher interest rates dampen asset overvaluations.  Also,

recent financial regulatory pressures discourage lenders from allowing too

much leverage for riskier investments.  More so than ever, investors need

greater amounts of equity capital to backstop risk, leading to more cautious

deal-making.

Ms. Jeanne Peck of the Real Estate Capital Institute(r), predicts "Realty

capital market fluctuations bring attractive investment opportunities to

well-capitalized and patient buyers.  Motivated sellers will accept lower

prices, especially on deals that have been 'retraded' because of rising

rates."

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

Jeanne Peck, Executive Director

director@reci.com

www.reci.com