Done Deals: JLL arranges $182 million refinancing for Orange County, CA office campus

Kevin MacKenzie

NEWPORT BEACH, CA – JLL Capital Markets announced it has arranged a $182 million refinancing for Intersect, a four-building, mid-rise, Class A office campus totaling 452,060 square feet in Irvine, California.

JLL worked on behalf of the borrower, a joint venture between Hines, the international real estate firm, and a leading global investment management firm, to place the three-year, interest-only financing with MetLife Investment Management.

Loan proceeds will be used to fund future leasing at the property and retire the existing loan that the same JLL team arranged for the borrower in 2018.

Since the borrower purchased the property, Intersect has undergone a complete renovation with improvements to the interior and exterior to create a vibrant, creative office hub.

John Chun

The transformation took the campus from 13 to 78 percent leased at the time of closing, with 45 percent of the tenant roster being investment grade.

Intersect comprises Buildings A, B, C and D, located at 17875 and 17877 Von Karman Ave. and 17872 and 17838 Gillette Ave., respectively, in the core Airport-Area submarket of Orange County.

The 15.05-acre site is situated in the heart of the Irvine Business Complex, just two blocks north of Interstate 405 at the high-profile intersection of Main Street and Von Karman Avenue.

Intersect is surrounded by a robust amenity base of retail, restaurants and entertainment offerings, including Irvine Concourse directly across the street, Park Place, South Coast Plaza and Fashion Island, as well as The District at Tustin Legacy.

The property consists of market-leading amenities including a state-of-the-art restaurant, shipping container beer garden and coffee shop, game pavilion, fire pits, chicken coop, bird aviary and sports court.

Nick Lench

Additional features at Intersect include indoor and outdoor workspaces; a new fitness center with Peloton bikes and classes, high-end locker rooms, spin studio and outdoor yoga law; private tenant terraces; a 40-plus seat stadium-style conference center; and a 16-plus person board room.

Intersect also features an above average parking ratio of 3.91 spaces per 1,000 usable square feet through a combination of 573 surface parking stalls, a 1,595-space structured parking garage at 17892 Gillette Ave. and a 181-stall subterranean parking facility.

The JLL Capital Markets Debt Placement team representing the borrower was led by Executive Managing Director Kevin MacKenzie, Managing Director John Chun and Associate Nick Lench.

“Intersect’s vision of creating a next-generation office environment that promotes a balance of work and wellness is critical in today’s environment,” said Tom Lawless, Director in Hines’ Orange County office. “We are thankful for our partnership with JLL and impressed with their execution during this time.”

Tom Lawless

“Identifying a new lender, going under application and closing during the COVID-19 pandemic provided some challenges, but a team effort and great relationships got it across the finish line to a favorable outcome,” MacKenzie said. “Hines has created a top-class asset with Intersect, and we feel fortunate to have been a part of another step in the success story.”

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers.

The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment advisory, debt placement, equity placement or a recapitalization.

The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.

For more news, videos and research resources on JLL, please visit the firm’s U.S. media center Web page: U.S. newsroom.

Jones Lang LaSalle Americas, Inc. ("JLL") is a real estate broker licensed with the California Department of Real Estate, license #01223413.

CONTACTS:

Kevin MacKenzie,

JLL Executive Managing Director

CA Lic.: #01898953

Phone: +1 949 798 4126

Email: Kevin.MacKenzie@am.jll.com

Kimberly Steele

JLL Senior Associate

Public Relations

Phone: +1 713 852 3420