Done Deals: May 11, 2019

Saturday, May 11, 2019

HFF arranges $314 million senior construction financing for Catalyst office development in Silicon Valley, CA

Rendering of Catalyst, a fully-entitled, four-property office portfolio that will comprise 587,942 square feet in Sunnyvale, CA

SAN FRANCISCO, CA –– HFF announces that it has arranged $313.8 million in acquisition and construction financing for the development of Catalyst, a fully-entitled, four-property office portfolio that will comprise 587,942 square feet in Sunnyvale, California.

Brandon Roth

HFF worked on behalf of a venture between Harvest Properties and Invesco Real Estate, a global real estate investment manager, to secure the construction loan through ACORE Capital, a leading commercial real estate finance company.

Catalyst currently consists of a shovel-ready office development site and three existing office buildings totaling 164,870 square feet, two of which will ultimately be demolished and replaced with new Class A office space.

Bruce Ganong

Upon completion, the development will comprise three newly built, Class A office buildings with two parking structures and one original Class B office building.

The project is situated in the heart of Silicon Valley, surrounded by high profile corporate neighbors, including Apple, Google, Microsoft, LinkedIn and Amazon.

Catalyst has superior connectivity to the entire Silicon Valley and Bay area being located within minutes of Highway 101 and State Route 237 as well as the Downtown Sunnyvale and Sunnyvale Baby Bullet Caltrain stations.

The HFF debt placement team representing the borrower was led by Brandon Roth, Bruce Ganong, Peter Smyslowski and Bercut Smith.

Peter Smyslowski

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

About Harvest Properties

Harvest Properties is a vertically-integrated, full-service commercial real estate investment firm that specializes in the acquisition, repositioning, development and management of commercial property, primarily through joint-venture investments throughout Northern California.

Over the last decade, Harvest has become an established leader in the marketplace by generating attractive returns for its financial partners, providing creative solutions and outstanding service.

Bercut Smith

About Invesco Real Estate

Invesco Real Estate is a global leader in the real estate investment management business with $68.8 billion in real estate assets under management, 508 employees and 21 regional offices across the U.S., Europe and Asia (as of 03/31/2019).

Invesco Real Estate has been actively investing in core, value-add and opportunistic real estate strategies since 1992. Invesco Real Estate is a business name of Invesco Advisers, Inc., an indirect, wholly owned subsidiary of Invesco Ltd.

CONTACTS:

BRUCE GANONG

CA Lic. #013332792

HFF Senior Managing Director

(415) 276-6940

bganong@hfflp.com

BRANDON ROTH

CA Lic. #01767532

HFF Senior Director

(415) 276-6300

broth@hfflp.com

KRISTEN MURPHY

HFF Director, Public Relations

(617) 848-1572

krmurphy@hfflp.com

www.acorecapital.com.

B+E sells Dollar General property for $3.49 million using its new 1031 exchange trading platform

Spencer Henderson

NEW YORK, NY– B+E, the first brokerage and technology platform for net lease real estate, announced the sale of the Dollar General property at 581 North Main St., Jamestown, KY, for $3,490,000.

The buyer worked with B+E to find the property using 1031 Trade, B+E’s new trading platform for 1031 exchange buyers. The net lease retail property carries a cap rate of +/-7.13% with 7+ years of remaining lease term.

The buyer, City Gate Properties, LLC, was completing a 1031 exchange.

"B+E’s online platform used AI to sweep the national market and find a net lease property that matched our buyer’s criteria," said Spencer Henderson, a B+E broker.

Michael J. Polk

“It’s incredible because buyers can quickly see nearly every deal currently on the net lease market and place offers.”

The deal was executed by B+E in conjunction with Michael Polk of Polk Properties.

For more information on this transaction, please contact Spencer Henderson at Shenderson@benetlease.com or go to www.benetlease.com.

Contact:

John Vita

John Steven Vita Communications

John.vita@jsvcom.com

847/853-8283

Marcus & Millichap Brokers $1.55 Million Sale of 5,500-SF, Net Leased Sheetz Property in Kent, OH

Erin E. Patton

KENT, OH – Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, has announced the sale of the 5,500-square-foot Sheetz located next to Kent State University in Kent, Ohio, according to Michael L. Glass, regional manager of the firm’s Cleveland office.

Michael I. Glass

Multiple offers were received during the marketing of the asset which sold above asking price for $1,557,000.

Casey Barker

Dustin Javitch, Craig Fuller, Erin E. Patton and Scott Wiles, investment specialists in Marcus & Millichap’s Cleveland office, had the exclusive listing to market the property on behalf of the seller, a private investor.

Dustin Javitch

The buyer, a private investor, was secured and represented by Casey Barker and Ray Turchi, investment specialists in Marcus & Millichap’s Orlando office.

Craig Fuller

Justin West, Regional Manager of the firms Orlando office assisted with this transaction.

Justin West

Sheetz is located at 1762 E Main St in Kent, Ohio. There were only a few years remaining on the lease. However the close proximity to campus and strong demand for the asset allowed for a sale at an aggressive cap rate of 5.81%.

Scott Wiles

Contacts:

Michael L. Glass

First Vice President/District Manager

Cleveland, OH

(216) 264-2000

www.MarcusMillichap.com

Kelly Slover

Certified Agent Support Specialist

Marcus & Millichap
Crown Centre
5005 Rockside Road, Suite 800
Independence, OH 44131

(216) 264-2000 main
(216) 264-2010 fax
kelly.s

Waypoint Office Campus in Mesa, AZ Hits 98 Percent Occupancy with Multiple Credit Tenants

Waypoint Four office development, Mesa, AZ

TEMPE, AZ – A string of major leases by national credit tenants has pushed the Harvard Investments / Lincoln Property Company (LPC) Waypoint office development to 98 percent leased.

The new commitments leave just under 11,000 square feet of space remaining at Waypoint, a four building, almost one-half-million-square-foot Class A campus situated in the heart of the rapidly developing mixed-use Riverview District in Mesa, Arizona.

Waypoint interior

The project’s newest lease comes via a 15,000-square-foot commitment by national homebuilder Beazer Homes for Waypoint Four. Beazer will use the new space for a division headquarters and design center. They are scheduled to begin occupancy at Waypoint in the fall of 2019.

Fortune 500 digital technology company Cognizant, who moved into 50,693 square feet at Waypoint Four in mid-2018, has also doubled its presence at the building, expanding to take the entire second and third floors with a total 101,072 total-square-foot lease.

John Orsak

“We’re excited that Beazer Homes and Cognizant have identified Waypoint as the right location for their growing organizations,” said Lincoln Property Company Vice President of Real Estate Development John Orsak.

“Both companies compliment the project’s already strong credit tenant roster, and both will be able to fully capitalize on not only the corporate environment at Waypoint but also the impressive – and expanding – assemblage of retail, dining, hospitality and recreational amenities within the Riverview District,”

Craig Krumwiede

Fronting the Loop 202 freeway at the borders of Mesa, Tempe and Scottsdale, Waypoint totals 425,861 square feet in four buildings featuring a high-tech modern aesthetic, multi-story lobbies and creative workspaces.

Buildings Three and Four, in particular, offer 14-foot open ceilings and glass windows that begin at floor level and extend 10 feet high. Other features include shared amenity areas and outdoor collaborative spaces.

Dave Carder

“Waypoint’s creative office layout allows companies to use their space in the way that best fits their organization,” said Harvard Investments President and CEO Craig Krumwiede.

“That has helped us to attract a dynamic mix of corporate and technology-driven companies, creating a very stable tenancy and a true legacy project.”

Waypoint One is already fully leased to tenants including Ashton Woods, Udall Shumway PLC and the corporate headquarters for Nextcare.

Waypoint Buildings Two and Three are fully leased to Mitel and Verra Mobility (formerly American Traffic Solutions), respectively, through single-tenant, long-term leases.

The first floor at Waypoint Four is occupied by engineering consulting firm EPS Group, who relocated and expanded into 27,283 square feet at the project in late 2018.

Building Four has a remaining 10,800 square feet on the first floor available for lease, offering an efficient layout with lobby presence and a generous glass line that maximizes natural light for interior work spaces.

Scott Boardman

Dave Carder and Scott Boardman at Cushman and Wakefield are the property’s exclusive leasing brokers. LPC manages all four Waypoint buildings, part of the firm’s almost 10 million-square-foot Phoenix property management portfolio.

The 35-acre Waypoint project sits adjacent to Riverview, which offers 1.3 million square feet of retail, restaurants, entertainment and the upscale Sheraton and Hyatt Place hotels.

For more on Waypoint, visit the property website at www.waypointarizona.com.

To discuss leasing, investment or property management opportunities with Lincoln Property Company in the Desert West region, please call David Krumwiede or John Orsak at (602) 912-8888.

CONTACT:

Stacey Hershauer

480.600.0195

stacey@focusaz.com

http://www.harvardinvestments.com/.

www.lpc.com or www.lpcphx.com.

Ware Malcomb Opens New Office in Dallas, TX; Hires Chris Mavros as Regional Director

Christopher Mavros

Irvine, CA – Ware Malcomb, an award-winning international design firm, today announced the opening of a new office in Dallas, Texas, bringing the total number of Ware Malcomb offices across the U.S., Canada, Mexico and Panama to 23.

Founded in 1972, the firm provides planning, architectural design, interior design, branding and civil engineering services for commercial real estate and corporate clients.

The newest Ware Malcomb office is located at 1919 McKinney Avenue, Suite 100 in the arts district of Dallas. Ware Malcomb has been active in the Texas market since 2013 and currently maintains an office in Houston.

Jay Todisco

Ware Malcomb also announced it has hired Chris Mavros as Regional Director to lead the new Dallas office.

In this role, Mavros will be responsible for the overall growth and management of the firm’s operations in Dallas, in addition to working regularly with Ware Malcomb’s Houston office to collaborate on projects across the state.

“We are excited to continue to expand our growing presence in the Texas market with the opening of a new office in Dallas,” said Jay Todisco, Executive Vice President of Ware Malcomb.

“We are also pleased to welcome Chris to the Ware Malcomb team as he leads our new operations in Dallas. His knowledge and expertise will help us to serve our clients across the state, and we look forward to his contributions in the years ahead.”

Mavros brings over 17 years of industry experience to his new role at Ware Malcomb.

Mavros holds a Bachelor of Architecture degree from the University of Oklahoma, and a Master of Business Administration (MBA) degree from Southern Methodist University.

CONTACTS:

Rachel Reenders

VP Public Relations

KCOMM for Ware Malcomb

Rachel@kcomm.com

Kelly Teenor, Director, Marketing, 949.660.9128, kteenor@waremalcomb.com

Maureen Bissonnette, Associate Principal, Marketing, 949.660.9128, mbissonnette@waremalcomb.com

waremalcomb.com

waremalcomb.com/news

Ware Malcomb’s Design video at youtube.com/waremalcomb

HFF and BUILD announce master-planned mixed-use development in San Francisco opportunity zone

Scott Eschelman

SAN FRANCISCO, CA –– HFF announced it is working on behalf of BUILD, a San Francisco residential development company, to arrange investment partners for the construction phase of its India Basin development located within a rare opportunity zone in San Francisco, California.

With the City of San Francisco’s approvals secured, BUILD’s vision will transform the former gravel yard on the San Francisco waterfront into a pedestrian-first, walkable residential village.

The development lies within a designated opportunity zone, as established by the Tax Cuts and Jobs Act of 2017, which allows for significant tax benefits to the investment.

Charles Halladay

Originally 30 independent parcels that have been combined into one master-project, the size of the development and its location in an opportunity zone is particularly noteworthy in San Francisco, a city known for its scarcity of available real estate.

The land is entitled for approximately 3.4 million gross square feet of new development, including approximately 1.5 million gross square feet of residential space.

Once constructed, the mixed-use village will include 1,575 residential units, 200,000 square feet of commercial space, expansive open and recreation space, enhanced waterfront access and underground parking.

India Basin is in San Francisco’s Eastern Waterfront immediately south of the Dogpatch and Mission Bay neighborhoods and allows for easy access to the major job centers in downtown San Francisco and the peninsula, including burgeoning life science hubs in both Mission Bay and Oyster Point.

Nearby, new commercial space and housing are in development at Hunter’s Point Shipyard and Candlestick Point to the south. India Basin has a reputation for being one of the sunniest neighborhoods in San Francisco and boasts a storied history and creative scene that complement areas of picturesque landscape and a rich ecology along San Francisco’s beautiful shoreline.

“BUILD, in partnership with HFF, is seeking investment partners for the construction phase of this unique development,” said Scott Eschelman of BUILD.

Jordan Angel

“We are excited to build this fully entitled parcel in such an incredible neighborhood and look forward to bringing in new partners to make our plans a reality.

"From the beginning, BUILD has worked closely with neighbors, the city and the broader community to ensure that this project in India Basin is a welcome addition to San Francisco’s Eastern Waterfront. BUILD has the local relationships and knowledge to make this project a success.”

The HFF equity placement team representing BUILD included senior managing director Charles Halladay, managing director Jordan Angel and senior director Chris Gandy.

Gandy stated that the site’s location and size provide a once-in-a-lifetime chance to develop an entire community within San Francisco.

“India Basin represents a unique investment prospect in a transformative development on the Eastern Waterfront of San Francisco.

"The long-term nature of the entitlements and location in an opportunity zone will provide investors with tremendous optionality for value creation over time in one of the most constrained residential real estate markets in the world.

"This site represents one of the best prospects in the United States to take advantage of the significant tax benefits available through opportunity zone investment.”