HFF arranges $123.2 million refinancing of Frost Bank Tower in Austin on behalf of Lionstone Investments
HOUSTON, TX – July 5, 2017 – Holliday Fenoglio Fowler, L.P. (HFF) announced today that it has arranged a $123.2 million refinancing for Frost Bank Tower, an iconic, trophy Class AA office tower in downtown Austin, Texas.
HFF worked on behalf of the borrower, Lionstone Investments, a data-analytics driven real estate investment firm, to secure the seven-year, floating-rate loan through New York Life Insurance Company.
Completed in 2003 and designed by Duda/Paine Architects, Frost Bank Tower consists of 33 stories of office and ground floor retail space totaling 535,924 rentable square feet. On-site amenities include a 5,500-square-foot fitness club with shower facilities, a 2,800-square-foot conference facility, full-service bank branch and dry cleaning services. The property is 96 percent leased to national, regional and local tenants with Graves Dougherty Hearon & Moody, and Frost National Bank, anchoring the property. Retail tenants include Soul Cycle, Taco Shack, Juiceland, Houndstooth Coffee and Modern Market. Frost Bank Tower occupies an entire city block at 401 Congress Avenue between 4th and 5th Streets in Austin’s central business district.
The HFF debt placement team representing the borrower was led by managing director Colby Mueck and senior managing director Doug Opalka.
“Frost Bank Tower is the most iconic trophy office tower in Austin’s CBD, which is one of the most dynamic markets in the country,” said Opalka. “When you look at the most desirable office addresses in the United States, Congress Avenue in Austin is always amongst a very elite peer set, and that is always led by Frost Tower.”
“This transaction is a rare combination of exceptional real estate, an outstanding market, top tier institutional ownership, and one of the perennial leaders in the lending world,” added Mueck.
About Lionstone Investments
Lionstone Investments is a data-analytics driven real estate investment firm that specializes in conceptualizing, analyzing, and executing national investment strategies on behalf of institutional investors and high net worth individuals. Lionstone’s objective is to identify and execute smart investments by understanding the evolution of internationally competitive cities, then pinpointing where the most productive people in America want to live and work—Places for Productive People.® Since its founding in 2001, Lionstone has consistently generated cycle-tested real estate investment performance that has exceed peer and industry benchmarks. Lionstone’s investment DNA was, and continues to be, data-driven, and is its greatest point of differentiation from other firms. Using proprietary research tools and algorithms, a highly-skilled staff, and deeply-experienced leadership, Lionstone sources unique investment opportunities and effectively executes them nationwide. Please visit our website at: lionstoneinvestments.com.
Holliday Fenoglio Fowler, L.P., HFF Real Estate Limited (collectively, “HFF”), HFF Securities L.P. and HFF Securities Limited (collectively, “HFFS”) are owned by HFF, Inc. (NYSE: HF). HFF and its affiliates operate out of 24 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 sales, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF.