HFF announces $144 Million financing of four-building Class A office campus in Orange County, CA

Four-building, mid-rise Class A office campus, Irvine, CA

 

Kevin MacKenzie

NEWPORT BEACH, CA –– HFF announces $144 million in financing for Intersect, a four-building, mid-rise, Class A office campus totaling 452,203 square feet in Irvine, California.

The HFF team worked on behalf of the borrower, a joint venture between a leading global investment management firm and Hines, to secure the three-year plus extension options, floating-rate loan through New York Life Insurance. 

 Loan proceeds will be used to retire existing debt and fund the remaining lease-up of the property.

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

 

John Chun

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

 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, The District, Fashion Island, as well as the Tustin Legacy project currently under development. 

 Since 2015, the property has undergone a complete renovation with improvements to the interior and exterior as well as the addition of a new state-of-the-art restaurant, and the addition of micro-retail shipping containers that will serve grab-n-go coffee, juice and food throughout the day. 

Jamie Kline

Additional market leading amenities at Intersect include indoor and outdoor workspaces, a 6,000-square-foot indoor/outdoor gym, private tenant terraces, a 100-plus seat stadium-style conference center, a 20-plus person board room and an outdoor game pavilion.

  Intersect also features an above average parking ratio of 4.4 spaces per 1,000 usable square feet through a combination of surface parking, a 1,583-space structured parking garage at 17892 Gillette Avenue and a 177-stall subterranean parking facility. 

The HFF debt placement team representing the borrower included executive managing director Kevin MacKenzie, senior director John Chun, director Jamie Kline, and associate Peter Thompson.

The HFF investment advisory team assisting in the transaction included Michael Leggett and Dereck Barker.

Peter Thompson

Kevin MacKenzie described the deal as “a great example of a sponsor strategically managing their business plan to take advantage of capital market dynamics.

By working together with our Investment Advisory team to establish value, and then structuring the financing offer properly based on current metrics in the debt markets, the sponsor was able to partially re-capitalize the asset mid-way through the business plan while significantly reducing their cost of capital. Hines and NY Life were excellent to work with throughout the process.”

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

For more information, please contact:

KRISTEN MURPHY
HFF Director, Public Relations
(617) 338-0990
krmurphy@hfflp.com

hines.com 

HFF announces sale and acquisition financing of Hotel MdR in Southern California’s Silicon Beach

 

Hotel MdR, West Los Angeles, CA

 

Kevin MacKenzie

 LOS ANGELES, CA –– HFF announces the sale of and acquisition financing for Hotel MdR – a DoubleTree by Hilton Hotel, a 283-room, full-service hotel located in West Los Angeles within the Marina del Rey submarket.

The HFF team arranged the sale on behalf of Lubert-Adler, Channel West Group and Arris Investments to U.K.-based London & Regional Properties (L+R).  This is the first hotel acquisition in the United States for L+R, which has a long-standing relationship with HFF’s London office. 

Additionally, the HFF team worked on behalf of L+R to place the five-year, floating-rate loan with a Germany-based lender.

Hotel MdR was extensively renovated and repositioned as a soft-branded DoubleTree Hotel in 2014.  The hotel features an outdoor heated pool and patio, state-of-the-art fitness facility, 24/7-business center, market, energy room with ping-pong table, 5,429 square feet of indoor/outdoor event space and Barbianca Local Kitchen restaurant.

Aaron Lapping

  Hotel MdR occupies a premier location at 13480 Maxella Avenue in the heart of Silicon Beach, the third largest technology hub in the world. 

The hotel is proximate to Playa Vista, Santa Monica and Venice, which are home to some of the world’s top TAMI (technology, advertising, media and information) companies, including Google, YouTube, Sony, Facebook and IMAX.

Additionally, the hotel is located just minutes from vibrant West Los Angeles submarkets, including Santa Monica, Venice and Culver City as well as Los Angeles International Airport.

Tony Malk

The HFF investment advisory team that arranged the transaction consisted of managing directors Tony Malk and Scott Hall and real estate analyst Aaron Lapping.

The HFF debt placement team representing the borrower included director Brad Greenway in HFF’s London office along with executive managing director Kevin MacKenzie and director Matthew Stewart in HFF’s Los Angeles office.

“HFF’s deep knowledge and relationships in the U.S. hotel market allowed us to strategically target a mutually beneficial transaction for both buyer and seller,” Malk said.  “This transaction demonstrates HFF’s cross-border capabilities as well as the continued desire of global capital sources to acquire well-located, quality hotels in strategic markets.”

“Hotel MdR is a uniquely located asset that derives significant demand from its surrounding technology hub,” Hall added.  “It will continue to benefit from continued demand growth and very little new competitive supply.”

“This transaction exemplifies the strength of the HFF platform since HFF was able to advise on all components of the transaction while successfully importing capital from both the U.K. and Germany,” Greenway said.

Holliday GP Corp. ("HFF"), a California licensed real estate broker, California License #01385740.   

  

For more information, please contact:

KIMBERLY STEELE

HFF Digital Content/Public Relations Specialist

(713) 852-3420

ksteele@hfflp.com

http://www.channelwestgroup.com.

http://lrp.co.uk/hotels.

http://www.arrisinvestments.com.

http://www.lubertadler.com.

Palm Coast, FL Hospitality Property Trades for $4.9 Million

 

Gabriel Shamay

PALM COAST, FL – Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, announced the sale of Red Roof Inn Palm Coast, a 78-room hospitality property located in Palm Coast, FL, according to Ryan Nee, vice president / regional manager of the firm’s Fort Lauderdale office. The asset sold for $4,900,000.

            “The buyer was a first-time hotelier who saw an opportunity to acquire a stabilized asset with long-term growth potential,” states Gabriel Shamay, associate, in Marcus & Millichap’s Fort Lauderdale office.

David M. Greenberg

David M. Greenberg, senior managing director investments, Robert S. Hunter, first vice president investments, David J. Altman, senior associate, Shamay, and Scott J. Havericak, associate, all located in Marcus & Millichap’s Fort Lauderdale office, had the exclusive listing to market the property on behalf of the seller, a limited liability company, and secured and represented the buyer, a private investor.

“The seller was an out of state owner, and the buyer was an out of state investor.  This deal is another example of Florida hotel investments being highly sought after by out of area capital.  Our team marketed the property across state and country lines, resulting in a competitive bidding environment,” states Greenberg.

Red Roof Inn Palm Coast is located at 10 Kingswood Drive in Palm Coast, FL.  The Property is a three-story, limited service hotel, well positioned directly off Interstate 95. The hotel is located only a short drive from beach access, sports complexes and state parks.

For more information, please contact:

 Ryan Nee

Vice President / Regional Manager, Fort Lauderdale

(954) 245-3400

Trammell Crow Residential Hires Brad Mooney, Former Schlage Lock Factory Development Project Director, as Alameda Point Senior Project Manager in Alameda, CA

Brad Mooney

MILL VALLEY, CA -- Trammell Crow Residential (TCR), a division of Dallas-based Crow Holdings, announced that the firm has hired Brad Mooney as Senior Project Manager for the company’s $1 billion mixed-use, transit-oriented waterfront development located at the gateway to Alameda Point, in Alameda, California. 

Mooney was most recently the Project Director for Bayside Development’s 1,679-unit redevelopment of the former Schlage Lock factory in San Francisco.

“Brad Mooney is a welcomed addition to our team as Senior Project Manager for this incredibly important project at Alameda Point,” said Bruce Dorfman, Senior Managing Director of TCR’s Northern California division.

 “Alameda Point Site A consists of 800 residential units, including 200 affordable units, up to 600,000 square feet of commercial/retail space, and a new ferry terminal and other public improvements.

Bruce Dorfman

"It is significant in both scale and impact on the region and given Brad’s vast experience with large-scale projects, such as the Schlage Lock redevelopment in San Francisco, we appreciate having his expertise and knowledge guiding our development.”  

At Bayside Development in San Francisco, Mooney was a primary member of the development team that entitled more than 3,200 mixed-use residential units across multiple projects in southeastern neighborhoods of San Francisco.

Prior to Bayside Development, Mooney had a noteworthy career as an innovative development and construction executive with broad expertise across multiple platforms including construction management, design, finance and entitlements.

 His success has been built upon the coordination of stakeholders through development of strong, honest and reflexive relationships that span cultural divides and bring businesses together. Mooney has extensive field knowledge, which informs his project management by establishing realistic goals based on practical expectations supported by market research. He has a personal emphasis and commitment to green building principles, technology and continued education.

Mooney graduated from the University of Illinois with a bachelor’s degree in Fine Art and a Master of Interdisciplinary Education from Virginia Commonwealth University. He has a Professional Certificate of Construction Management from the University of Washington. 

For more information, please contact:
 

Anne Monaghan
MONAGHAN COMMUNICATIONS, INC.
anne@MonaghanPR.com
830.997.0963

www.TCR.com.

Rendering of  Core5's planned 601,350-SF Build-to-Suit Project,
West Atlanta, GA

ATLANTA, GA  – Atlanta-based Core5 Industrial Partners announced a 601,350 square-foot build-to-suit for Empire Distributors, Inc. a wholesale beverage distributor that serves three states in the Southeast (GA, TN and NC) and represents over 1,000 brands from around the world.

       The building resides at 685 Hartman Road in Austell, Georgia. The facility is an expansion for Empire, moving from approximately 300,000 square feet in Atlanta Industrial Park in Fulton County to the new building in Southwest Cobb County.

Lisa M. Ward

        Empire’s corporate headquarters and its regional distribution operations will be housed in the facility which will feature over 80,000 square feet of two-story office space alongside dedicated cooler and distribution space.

       The entire building will be climate controlled to maintain the high quality of inventory stored. Empire will employ a workforce of over 440 people with anticipated growth to over 510 employees within ten years. The facility plans to be fully operational by the fourth quarter of 2018. Anticipated investment in building and equipment is over $52 million.

Billijack Bell

       The Empire facility is the first build-to-suit deal for three-year-old Core5 Industrial Properties. The site was a three-parcel property, totally 70 acres, upon which Core5 initially planned to build a speculative distribution facility.

        However, prior to closing on the site and beginning speculative construction, they pitched the site to Empire Distributors for a build-to-suit.

        The driving factor for Empire was its proximity to Atlanta’s population base; the multiple access points, including Thornton Road, Riverside Parkway and Fulton Industrial Boulevard; and, proximity to Empire’s existing facility, which enhanced employee retention and the ability to custom design the building to Empire’s specifications.

The design team for the building is Randall Paulson Architects and Southeast Engineering, Inc. The site work contractor is Plateau Excavating, and the general contractor is KBDG, Inc.

     “This is a terrific project for Core5 and for KBD Group who has partnered with Core5 to build the facility”, states Lisa Ward, Senior Vice President and Managing Director for Core5.

      Representing Core5 on the land assemblage was Bilijack Bell of Wilson, Hull & Neal Real Estate. Blaine Kelley of CBRE represented Empire Distributors on the acquisition of the facility.

 Core5 Industrial Partners is an industrial real estate property company with expertise in development and acquisition of Class-A industrial properties throughout the United States.

Blaine Kelley

Headquartered in Atlanta, Georgia and named for its five core business principles, the company has current development pipeline of over 5 million square feet of Class-A industrial facilities in Atlanta, Chicago, Dallas, Los Angeles/Inland Empire, Memphis, Pennsylvania and South Florida, Core5 has developed over 10 million square feet since its inception in just under three years.

Expansion plans include additional key logistic hubs throughout the US. For information on Core5 Industrial Partners, visit www.c5ip.com.

Empire Distributors is a wholesale beverage distributor that serves Georgia, North Carolina and Tennessee in the Southeast and represents over 1,000 brands from around the world. For more information, visit www.empiredist.com

     Contact Lisa Ward with Core5 Industrial Partners at lward@c5ip.com or 404-262-5430 for additional information.

For more information, please contact:

RITA SKAGGS

RED DART Real Estate Consulting

404.788.3231

rita@reddart.co

DAUM Commercial Completes 104,000-SF Industrial Lease to International Supply Firm in Rancho Dominguez, CA

Michael Collins

            RANCHO DOMINGUEZ, CA – DAUM Commercial Real Estate Services has completed the 10-year lease of a recently-renovated 104,339 square-foot industrial building in the South Los Angeles County submarket of Rancho Dominguez, California on behalf of the lessor, Industrial Property Trust (IPT), according to Michael Collins, Vice Chairman of DAUM Commercial and Manager of the firm’s South Bay office.

Collins represented IPT, a REIT operated by Denver-based real estate investment firm Black Creek Group, along with Jordan Lara, a First Vice President at DAUM’s South Bay office, and part of the LARA Team. The new tenant, Apex International, a global supply chain solutions provider, is relocating and expanding from a nearby 34,500 square-foot facility. 

Jordan Lara

“The lease to Apex International continues to prove the strength of this investment for our Client,” explains Collins. “The Los Angeles West/South industrial submarket posted a steady sub-two-percent vacancy rate in Q4 of last year, and asking rents have increased nearly 10 percent over the past year.

"Based on our long-term relationship with the lessor and experience in the South LA region’s industrial market, we were able to identify and secure an ideal, high-quality tenant concurrently with the completion of our Client’s $2.5 million in capital improvements to optimize the building for today’s industrial users.”

DAUM directed the acquisition of the property to IPT in January 2017 for $12 million. The asset is currently valued near $20 million, according to Collins.

Steve Young

“With this lease, the tenant has the opportunity to occupy a modernized industrial building in close proximity to the Ports of Los Angeles and Long Beach,” continues Collins.

DAUM worked under the direction of Steve Young, an Asset Manager at Black Creek Group, to negotiate with the tenant to ensure a successful lease transaction, notes Collins.

The recent renovations to the building included the demolition of a portion of the building to expand the truck court, addition of dock-high loading doors, and the construction of 10,000 square-feet of new two-story office space, which replaced outdated offices, according to Young.
The asset also features warehouse clearance up to 26 feet, a secure fenced yard, and a calculated sprinkler system throughout. The location of the property provides direct access to I-710 and I-405.

The total consideration of the lease is approximately $10.5 million, and it is scheduled to commence on May 1. Frank Shen of Realty Advisors represented Apex International as the lessee in this transaction.

The property is located at 18554 South Susana Road in Rancho Dominguez, California.

For more information, please contact:

Lindsay Mackay / Elisabeth Manville

Brower Group

(949) 955-7940

lmackay@brower-group.com

www.daumcommercial.com.

Meta Housing Corp. Completes Affordable Apartment Community in Signal Hill, CA

Traditional ribbon-cutting ceremony led by Signal Hill Mayor
 Edward H. J. Wilson (center)  at opening of Zinnia apartments, 
Signal Hill, CA

SIGNAL HILL, CA – Meta Housing Corporation has completed Zinnia, a 72-unit affordable apartment community in Signal Hill, California. The Studio One Eleven designed community will provide quality housing to low income families throughout the City of Signal Hill, according to Kasey Burke, President of Meta Housing Corporation.

Kasey M. Burke

“Housing affordability continues to be a critical issue for communities throughout the U.S.,” says Burke. “City of Signal Hill has been an instrumental partner on Zinnia since the project’s inception. Through this collaboration, we are able to effectively address the need for more affordable housing in Signal Hill.”

Located in close proximity to local transit options, Zinnia was designed with a focus on community engagement, walkability, and sustainable design.

“As with all Meta communities, we focused on thoughtful integration of elements that encourage engagement with community residents as well as the surrounding neighborhood,” explains Burke. 

Zinnia Apartments, Signal Hill, CA

“The iconic community building, outdoor patio, community garden, playground, and mini dog park encourage opportunities for social interaction amongst residents. Zinnia is a vital addition to the City’s planned redevelopment of the area around their civic center and is immediately adjacent to Signal Hill Elementary School.”

Zinnia achieved Gold-level LEED for Homes certification, according to Meta Housing Corporation’s Executive Vice President, Chris Maffris.

Chris Maffris

“We’re proud to bring sustainable, much-needed affordable housing for families to Signal Hill,” says Maffris.  “As a company, we remain committed to smart growth, through a focus on transit-oriented communities, and environmentally sound, cost efficient design.”

Financing for the project was provided by the City of Signal Hill, California Tax Credit Allocation Committee and Bank of America Merrill Lynch.

“Bank of America Merrill Lynch, a leading financier of affordable housing, provided short term construction financing and a long-term equity investment to help make Zinnia affordably priced for working families to call Signal Hill home,” says Charmaine Atherton, Senior Vice President, Bank of America Merrill Lynch Community Development Bank.

Charmaine Atherton

Social services offered at Zinnia include educational classes on employment preparation, financial literacy, life skills, health, wellness and fitness programs and after school programs for youth such as tutoring. The apartment community is located at 1500 E. Hill Street in Signal Hill, California.

       Since 1993, Meta Housing Corporation has established itself as one of Southern California’s most experienced and trusted developers of apartment communities for families and seniors, developing more than 6,000 residential units. 

For more information, please contact:

Lindsay Mackay ·  Account Coordinator 
O 949 955 7940 

Brower Group, Inc.
The Smart Agency™ for Smart Clients who want Smart Work
895 Dove Street, Third Floor · Newport Beach, CA 92660

Email · Website · Facebook · Twitter · Instagram

www.metahousing.com