HFF Brokers $71M Sale of One Bethesda Center in Bethesda, MD

WASHINGTON, D.C. – The Washington, D.C. office of HFF (Holliday Fenoglio Fowler, L.P.) announced the sale of 4800 Hampden Lane (One Bethesda Center), (top left photo) a 167,000-square-foot, Class A office and retail building in Bethesda, Maryland.

HFF senior managing directors Jim Meisel (middle right photo) and Dek Potts led the investment sales team exclusively on behalf of the seller, Brookfield Properties Corporation. JBG Companies purchased the property for $71 million and assumed a $53 million existing loan.

One Bethesda Center consists of a 12-story office tower and two-story retail building that is 99% occupied by 14 tenants including Boston Consulting Group, Paley Rothman and AREVA NC.

The property was constructed in a “stepped” architectural design allowing for large terraces on select floors and a large rate of windowed offices. Tenants have access to on-site amenities including a bank, salon and day spa, travel agency and a café. In downtown Bethesda, the property is adjacent to Bethesda Row and walking distance to the Bethesda Metro Station providing access to the greater Washington, D.C. region.

“One Bethesda Center is truly a landmark office building with a premier downtown Bethesda location, excellent tenancy, panoramic views on four sides and an above average parking ratio,” said Meisel.

“As we have seen throughout this challenging year, quality buildings with stable rent rolls in strong submarkets will generate competitive pricing,” added Potts.

Brookfield Properties owns, develops and manages premier office properties. Its current portfolio is comprised of interests in 108 properties totaling 75 million square feet in the downtown cores of New York, Boston, Washington, D.C., Los Angeles, Houston, Toronto, Calgary and Ottawa, making it one of the largest owners of commercial real estate in North America.

 Landmark assets include the World Financial Center in Manhattan, Brookfield Place in Toronto, Bank of America Plaza in Los Angeles and Bankers Hall in Calgary. The company's common shares trade on the NYSE and TSX under the symbol BPO. www.brookfieldproperties.com.

Since 1960, the JBG Companies has been an active investor, owner and developer in the Washington metropolitan area's real estate market - one of the most dynamic markets in the world. JBG's track record in securing superior risk-adjusted returns is widely recognized within this high-performance market.

The company’s diverse portfolio encompasses millions of square feet of office, residential, hotel and retail projects, and includes many of the region's most distinguished properties.

Contacts;
James A. Meisel, HFF Senior Managing Director, (202) 533-2500, jmeisel@hfflp.com
Stephen "Dek" Potts, HFF Senior Managing Director, (202) 533-2500, dpotts@hfflp.com
 Kristen M. Murphy,  HFF Associate Director, Marketing, (713) 852-3500, krmurphy@hfflp.com

HFF secures financing and joint venture equity totaling $55.2M for 240 West 35th Street in Manhattan’s Garment Center

NEW YORK, NY – The New York office of HFF (Holliday Fenoglio Fowler, L.P.) has secured financing and joint venture equity totaling $55.2 million for 240 West 35th Street, an 18-story office building in Manhattan’s Garment Center. (Above centered photo)

HFF director Steven Klein (top right photo) and senior managing director Mike Tepedino (top left photo) worked on behalf of Hidrock Realty, Inc. to arrange the $41.2 million, senior secured financing through HSH Nordbank.

Affiliates of Meritage Properties provided $14 million in joint venture equity. Proceeds are being used to acquire, renovate and reposition the property.

Originally built in 1924, 240 West 35th Street has 162,044 square feet that is fully leased to 37 tenants. The property is located on 35th Street between 7th and 8th Avenues in the Garment Center of Manhattan. Ten subway lines, a PATH station, Penn Station and the Port Authority are within blocks of the property.

“The venture between Hidrock Realty and Meritage Properties brings new ownership to this asset with significant experience in operating, renovating and managing Class B buildings in the Garment Center,” said Klein. “We would expect this strategic partnership to successfully reposition 240 West 35th Street while simultaneously enjoying the overall redevelopment of the surrounding sub-market.”

HFF (NYSE: HF) operates out of 18 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry.

HFF offers clients a fully integrated national capital markets platform including debt placement, investment sales, structured finance, private equity, note sales and note sale advisory services and commercial loan servicing. http://www.hfflp.com/.

CONTACTS:

Steven J. Klein, HFF Director, 212 245 2425, sklein@hfflp.com

Laurie Fish McDowell, HFF Associate Director, Marketing, 617 338 0990, lmcdowell@hfflp.com