HFF announces $144M financing of four-building Class A office campus in Orange County, California
NEWPORT BEACH, CA – May 7, 2018 – 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. 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. 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.
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.
Hines is a privately owned global real estate investment firm founded in 1957 with locations in 192 cities in 20 countries. Hines has $93.2 billion of assets under management, including $47.9 billion for which Hines provides fiduciary investment management services, and $45.3 billion for which Hines provides third-party property-level services. Hines has 105 developments currently underway around the world, and historically, has developed, redeveloped or acquired 1,180 properties, totaling over 379 million square feet. The firm’s current property and asset management portfolio includes 483 properties, representing over 199 million square feet. With extensive experience in investments across the risk spectrum and all property types, and a pioneering commitment to sustainability, Hines is one of the largest and most respected real estate organizations in the world. Visit hines.com for more information.
HFF and its affiliates operate out of 26 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment advisory, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. HFF, HFF Real Estate Limited, HFF Securities L.P. and HFF Securities Limited are owned by HFF, Inc. (NYSE: HF). For more information, please visit hfflp.com or follow HFF on Twitter @HFF.