Arden Group Acquires The Sheraton Atlanta Hotel; $7 Million Additional Renovations Planned

Craig A. Spencer

PHILADELPHIA, PA –- Arden Group, through their discretionary fund affiliate Arden Real Estate Partners II, LP, announced they have acquired the Sheraton Atlanta Hotel.

The recently renovated 763 room upscale hotel includes over 100,000 square feet of event and meeting space. Sheraton full service amenities feature an indoor/outdoor climate-controlled swimming pool and whirlpool, spacious indoor Garden Courtyard with a retractable glass roof, Sheraton fitness center, business center, Collage restaurant and Fandangles restaurant and bar. 

Arden will be investing an additional $7 million on top of the recent $15 million spent on renovations completed in 2016.  Arden will further enhance the guest room experience, lobby, meeting rooms and the restaurant. The sale was facilitated by Jones Lange LaSalle.

The property is located in downtown Atlanta at 165 Courtland St NE adjacent to Georgia State University. The hotel benefits from demand generated by the university, continued corporate relocations, its proximity to key Atlanta tourist attractions and the Georgia World Congress Center.

Commenting on the investment, Craig A. Spencer, CEO of Arden Group said, “We are pleased to have acquired this quality full-service convention hotel in this robust downtown market. Atlanta’s dynamic job growth has created an exciting investment environment.”

Spencer continued, “We are able to provide a solid financial platform for the property, as well as the necessary funding for renovations and operating expertise that will enhance and reposition the property in the market.

“This acquisition is consistent with our strategy of investing in opportunities for value creation, making this our fourth hotel purchase in the past two years. The planned renovation and Arden’s strategic asset management oversight will allow us to achieve our operational goals as well as enhance appreciation of the asset over time.” 

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

Taylor Rowden

PUBLICIST

LIZ LAPIDUS PR

O | 404-688-1466

C | 404-735-0198

FOLLOW US @lizlapiduspr

FOLLOW ME @taylor_rowden

772 Edgewood Ave, NE

Atlanta, Georgia 30307

www.heihotels.com.

www.ardengroup.com

HFF secures acquisition financing for 425-unit apartment community in Orlando, FL

The District Apartments, 9702 Universal Boulevard, Orlando, FL

HOUSTON, TX – March 13, 2017 – Holliday Fenoglio Fowler, L.P. (HFF) announced today that it has secured acquisition financing for The District, a 425-unit, four-story, wrap-style apartment community in Orlando, Florida.

Cortney Cole

HFF worked exclusively on behalf of the borrower, Venterra Realty (Venterra) to place the seven-year, 4.06 percent fixed-rate loan with a correspondent life company lender.  The loan has four years of interest only payments.

 The District is situated on 10.1 acres at 9702 Universal Boulevard.  The property is near the area’s top tourist destinations and approximately two miles east of SouthPark Center, a 2.9 million-square-foot office park that is home to globally recognizable companies and nearly 10,000 employees.

Brett Moss

 In addition, Orlando’s central business district is less than 12 miles northeast of the property.  The District offers studio, one-, two- and three-bedroom units averaging 942 square feet and 25,910 square feet of ground-floor retail situated around a central courtyard with a resort-style pool. 

Additional amenities include outdoor fire pits and cooking stations, a two-level health and fitness center, multimedia lounge, business and conference center, cyber café, game room and four-level parking garage.

The HFF debt placement team representing Venterra was led by managing director Cortney Cole and associate director Brett Moss.

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

Olivia Hennessey

Public Relations Specialist

HFF | 9 Greenway Plaza Suite 700 | Houston, Texas 77046

tel 713.852.3403 | fax 713.527.8725 | www.hfflp.com

ohennessey@hfflp.com

HFF closes $23.5 million sale of and arranges financing for Gresham Station Medical Plaza in suburban Portland, OR

 

Gresham Station Medical Plaza, Gresham, OR

PORTLAND, OR,  March 13, 2017 – Holliday Fenoglio Fowler, L.P. (HFF) announced today that it has closed the $23.5 million sale of and arranged the financing for Gresham Station Medical Plaza, a 100,419-square-foot, four-building medical office complex in the suburban Portland community of Gresham, Oregon.

Erica Christensen

HFF marketed the property on behalf of the seller, Westlake Realty Group, Inc., and procured the buyer, Stockdale Capital Partners.  Additionally, HFF worked on behalf of the new owner to secure the acquisition loan.  HFF handled the sale of the adjacent Gresham Station Shopping Center on behalf of Westlake in 2016. 

Nick Kucha

Gresham Station Medical Plaza is located at 831 NW Council Drive, 862-894 NW Burnside Drive and 1851-1867 NW Civic Drive, near the Adventist Medical Center. 

This location, southeast of Portland, is adjacent to Gresham Station Shopping Center, Gresham City Hall and the Civic Drive MAX station, and has a population of 243,000 people within a five-mile radius.

 Completed in 2004, the property is 77 percent leased and is anchored by Adventist Health.  Additional tenants include DaVita HealthCare Partners Inc. and Providence Health & Services.  The facility provides an array of services, including surgery, imaging, dialysis, primary care, orthopedics, laboratory, physical therapy, dermatology, dentistry, women’s health and pediatrics.

The HFF investment sales team representing the seller was led by senior managing director Nick Kucha, managing director Evan Kovac, associate Andrew Milne and analyst Trent Jemmett.

HFF’s debt placement team representing the borrower was led by managing director Jeremy Womack and associate director Erica Christensen.

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

Kristen Murphy

Director, Public Relations

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

tel 617.848.1572 | cell 617.543.4873 | www.hfflp.com

krmurphy@hfflp.com

www.stockdalecapital.com.

www.westlake-realty.com.

$81.337 million financing secured by HFF for award-winning Fairmont Newport Beach, CA hotel

Fairmont Newport Beach Hotel, Newport Beach, CA

NEWPORT BEACH, CA, March 13, 2017 – Holliday Fenoglio Fowler, L.P. (HFF) announced today that it has secured $81.337 million in acquisition/bridge financing for Fairmont Newport Beach, a 444-room, full-service, AAAA-Diamond award-winning hotel in the Southern California community of Newport Beach, California.

HFF worked on behalf of the borrower to place the three-year, floating-rate loan with Aareal Bank.  Loan proceeds will be used to purchase the hotel and implement a property improvement plan that will include rebranding it as a Marriott Renaissance Hotel, Marriott’s upscale lifestyle hotel brand.

James Fowler

The 10-story Fairmont Newport Beach was completed in 1983 and renovated in 2007.  The upscale hotel features 42,000 square feet of indoor and outdoor meeting and event space; an 8,000-square-foot spa; outdoor pool with cabanas; fitness center; tennis courts; 24-hour business center and two food and beverage options, the Citrus and AVO Bar + Restaurant.

 The rebranding process will include renovations of the lobby, guestrooms and restaurant and bar space.  Situated on 7.3 acres at 4500 MacArthur Boulevard in Orange County, the Fairmont Newport Beach is located at the conflux of the coastal community of Newport Beach and the commercial core of Irvine, two of the nation’s largest master-planned urban communities.

 The hotel is proximate to 54 million square feet of office space, world-class retail and area attractions.

The HFF debt placement team representing the borrower was led by managing director

James Fowler.

“The business plan to renovate the hotel into a full-service, upper-upscale brand that targets lifestyle-oriented business and leisure travelers makes perfect sense and should do exceeding well in this market,” Fowler said.

 “Not only will it upgrade the hotel to a more innovative distinctive style, it will plug this hotel into the strength of the Marriott reservations systems.  A win-win all the way around.”

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

Kristen Murphy

Director, Public Relations

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

tel 617.848.1572 | cell 617.543.4873 | www.hfflp.com

krmurphy@hfflp.com

HFF arranges $65 million financing for high-end mixed-use property in Houston, TX

CityCentre, Houston, TX

Scott Galloway

HOUSTON, TX, March 13, 2017 – Holliday Fenoglio Fowler, L.P. (HFF) announced today that it has arranged $65 million in interim financing for the 307,509-square-foot retail component of CityCentre, a premier mixed-use urban development in Houston, Texas.

HFF worked on behalf of the borrower, a partnership between Midway and L&B Realty Advisors, to secure financing through JPMorgan and First Tennessee Bank. 

Originally developed by the borrower in 2007, CityCentre comprises retail, office, hotel and residential space surrounded by European-style, open-air plazas and green spaces.

 The retail component is a shopping and entertainment destination lifestyle center that is leased to a variety of high-end national and regional retailers and restaurants, including Studio Movie Grill, west elm, Sur La Table, Eddie V’s, BRIO Tuscan Grille, Charming Charlie, H&M, Urban Outfitters and Anthropologie.

 Located at 800 Town and Country Boulevard, CityCentre is at the southeastern corner of Interstate 10 and Beltway 8 near Houston’s Energy Corridor.  CityCentre is located in one of the wealthiest ZIP codes in Texas, as more than 10,800 residents earning an average annual household income of more than $169,800 live within a one-mile radius of the property.

The HFF debt placement team representing the borrower was led by executive managing director Scott Galloway and managing director Colby Mueck.

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

Kristen Murphy

Director, Public Relations

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

tel 617.848.1572 | cell 617.543.4873 | www.hfflp.com

krmurphy@hfflp.com

http://www.lbrealty.com.

www.midwaycompanies.com.

Tallahasse, FL Apartment Portfolio Sells for $9.35 Million

 

Joshua Teplitzky

 TALLAHASSEE, FL, March 13, 2017 – Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, today announced the sale of a two-property, 195-unit multifamily portfolio located in Tallahassee, Florida, according to Ari Ravi, regional manager of the firm’s Tampa office. The asset sold for $9,350,000.

Joshua Teplitzky, senior associate, and Francesco P. Carriera and Michael P. Regan, both senior managing director investments, had the exclusive listing to market the property on behalf of the seller.  Cameron Barbas, senior associate, along with Teplitzky, Carriera and Regan procured the buyer.

“The Tallahassee Portfolio was part of a two-property sale that was the product of a perfectly executed 1031 exchange within our team,” says Barbas. “The buyer exited a 100-unit property in South Tampa that we sold in August of 2016 for $6.4 million.”

“With this acquisition the buyer almost doubled the number of unit in his portfolio and reduced his overall basis on a cost per unit,” adds Teplitzky. “The buyer plans to add significant value on the unit interiors and convert a larger portion of the tenant base to students due to the close proximity of the properties to campus.”

Francesco P. Carriera

The portfolio, which includes Sabal Court Apartments and Silver Leaf East Apartments, received more than $300,000 of capital improvements since 2014. Sabal Court Apartments is a 129-unit community located at 2125 Jackson Bluff Road and Silver Leaf East Apartments has 66 units located at 2712 West Tharpe Street.

The portfolio consists of two studios, 97 one-bedroom/one-bathroom, 64 two-bedroom/one-bathroom, 24 two-bedroom/two-bathroom and eight three-bedroom/two-bathroom units ranging in size from 550 square feet to 1,250 square feet.

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

Ari Ravi

Regional Manager

Tampa, FL

(813) 387-4700

George Smith Partners Secures $30 Million in Refinancing for Grocery-Anchored Shopping Center in Greater Los Angeles, CA

Plaza de Hacienda, La Puente Submarket, Los Angeles, CA

Shahin Yazdi

LOS ANGELES, CA (March 13, 2017) – Commercial investment banking firm George Smith Partners has secured $30 million in refinancing for Plaza de Hacienda, a 156,000 square-foot grocery-anchored retail center in the La Puente submarket of Los Angeles. 

The financing was arranged by George Smith Partners Principal and Managing Director Shahin Yazdi.

The property is located at 1735-1869 N. Hacienda Boulevard in La Puente, California.

“Financing for shopping centers continues to generate mixed responses from lenders,” says Yazdi. “While some lenders are demonstrating strong appetite for retail, others are proceeding with caution and being more conservative in their underwriting.”

George Smith Partners was successful in attracting competitive refinancing for this center, which is anchored by Food 4 Less, and boasts national and credit tenants such as Ross, Big 5 and Jack in the Box, among others.

“Well-located centers with solid financials and anchor tenants in place can still attract strong lender interest,” Yazdi says.  “The fact is, there are ample sources of capital available to finance these investments, provided they are presented to lenders correctly.”

The sponsor, Optimus Properties, LLC, a privately held real estate investment firm that owns a diverse portfolio of commercial assets, had requested a fixed-rate loan with the goal of refinancing its maturing loan for this regional retail center.

 

Kamyar Shabani

“With the wave of CMBS loans set to mature this year, many borrowers are looking to refinance.  It’s prudent to seek long-term fixed-rate loans in order to lock in low rates now, prior to future interest rate increases,” notes Yazdi.

“The challenge with this deal, however, was that despite the strength of the center’s tenant mix, many of the anchor tenants had leases that were set to expire in the next several years. As a result, many lenders were hesitant to be aggressive with the debt yield.”

Kamyar Shabani, Principal and Co-Founder of Optimus Properties, explains, “With our existing loan set to mature, we knew that we needed a competitive financing structure that would keep us leveraged on the property.  

"By communicating the strength of our investment strategy, George Smith Partners delivered an optimal financing solution that will allow us to own and operate this center as a strong cash-flowing asset for years to come.”

“Ultimately, we were successful in meeting the borrower’s objectives in cashing out as much equity as possible for future investments, while also maintaining great cash flow for the borrower by negotiating five years of interest only payments,” confirms Yazdi. “Our ability to close this deal within 40 days from the time of application speaks to the strength of our innovative structuring expertise, as well as our deep lender relationships.”

The sponsor plans to perform capital improvements as needed, and maintain the retail center as a high profile, cash-flowing asset.

            George Smith Partners secured the $30 million loan from a CMBS lender. The ten-year loan was structured with a loan-to-value of 65 percent with a five-year interest-only period, followed by an amortization of 30 years. The rate was fixed at the 10 year swap plus 2.53% with a 1.23 debt coverage ratio and 7.75% debt yield.

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

Miki Conant / Katie Kea

Brower, Miller & Cole

(949) 955-7940

mconant@browermillercole.com

www.GSPartners.com.