Done Deals: Jan 21, 2019

Monday, January 21, 2019

HFF announces $56.4 million bridge financing for redevelopment of the historic Herald Examiner Building in Los Angeles, CA

Rendering of Herald Examiner Building
1111 South Broadway, Downtown Los Angeles, CA

LOS ANGELES, CA –– HFF announces the $56.4 million bridge financing for the redevelopment and renovation of the Herald Examiner Building, an approximately 100,000-square-foot, one-of-a-kind, historic building in Downtown Los Angeles, California.

The HFF team worked on behalf of the developer, The Georgetown Company, to arrange a bridge loan from J.P. Morgan.

Julia Morgan

Loan proceeds will be used to fund the renovation and restoration of this iconic property to its former grandeur, which includes redeveloping the existing structure into creative office, retail and restaurant space while maintaining the building’s historic features.

Margarita and Walter Manzke

Arizona State University is set to open a Downtown Los Angeles campus in the building, while celebrated restaurateurs Walter and Margarita Manzke of République will unveil a new restaurant on the ground floor.

William Randolph Hearst

Originally completed in 1914, the Herald Examiner building was designed by Julia Morgan, California’s first registered female architect, for William Randolph Hearst to serve as the headquarters for the Los Angeles Examiner.

Todd Sugimoto

Morgan designed building in the Mission Revival style with an elaborate lobby that included grand, arched spaces lined with carved marble friezes, wood-trussed high ceilings and a patterned tile floor.

Located at 1111 South Broadway, the building is in DTLA’s vibrant South Park neighborhood, which houses the Microsoft Theater, STAPLES Center, the Los Angeles Convention Center and the Ace Hotel.

An Apple store, the Hoxton Hotel and the Proper Hotel are also currently planned for the neighborhood, which has rapidly become a dining, shopping and cultural hub of the city.

The landmark property is now being restored to its original grandeur, the illustrious two-story lobby conjuring up the style and elegance of its past. When completed, the iconic building will offer a mix of restaurants and retail on the first floor with creative office space on the upper floors.

Jeff Sause

The historic building will adjoin South Park with the Broadway Corridor, another rapidly growing and resurgent neighborhood. Widely recognized as one of the most unique and dynamic properties in Downtown Los Angeles, the Herald Examiner building will cement the area as a destination neighborhood.

The HFF debt placement team consisted of managing director Todd Sugimoto, senior director Jeff Sause and analyst Spencer Richley.

"It's an honor to partner with both HFF and J.P. Morgan on this project,” said Michael Fischer, vice president of Georgetown. “Their teams have been incredibly professional and effective through the whole process.

Michael Fischer

"We have always been very confident in the growth of the South Broadway Corridor and the strength of the downtown market overall. This announcement is a key step towards bringing back this iconic property in all its former glory.”

“We’re thrilled to continue our longstanding relationship with The Georgetown Company and work with key industry players like HFF, providing our deep industry expertise to support the redevelopment of the Herald Examiner building,” added Matt Felsot, west regional manager for Real Estate Banking at J.P. Morgan.

Matt Felsot

The Herald Examiner Building project is The Georgetown Company’s latest development in the Los Angeles area. The company recently completed a $280 million multi-phase redevelopment of Sony Pictures Entertainment’s Culver City Studio Lot, creating new office and production facilities, added amenities and improved public spaces.

Georgetown also previously developed a theater and office buildings at the Paramount Pictures Studios on Melrose Avenue in a joint venture with Paramount Pictures.

Holliday GP Corp. ("HFF") is a real estate broker licensed with the California Department of Real Estate, License Number 01385740.

Adam Flatto

The Georgetown Company develops and invests in residential, commercial and mixed-use properties throughout the United States, with a focus on emerging neighborhoods in best-of-class locations.

Led by CEO Adam Flatto and founded in 1978, Georgetown is a privately-held diversified real estate development company that is recognized for attracting long-term partners and creating popular destinations after carefully selecting properties and diligently nurturing them through all stages of development and ongoing operations.

Georgetown is headquartered in New York City and currently owns and is developing properties in New York City; Los Angeles; Chicago; Columbus, Ohio; Boston and Washington, D.C.