HFF arranges $165 million financing for Palm Beach Outlets in West Palm Beach, Florida
BOSTON, MA – Holliday Fenoglio Fowler, L.P. (HFF) announced today that it has arranged $165 million in financing for Palm Beach Outlets, a 459,633-square-foot, open-air outlet center in West Palm Beach, Florida. The loan collateral also includes land for the future development of 105,000 additional square feet of retail space.
HFF worked on behalf of the borrower, New England Development and a commingled fund managed by Clarion Partners, to secure the long-term, fixed-rate loan through Cornerstone Real Estate Advisers LLC, acting on behalf of an institutional client. Loan proceeds were used to acquire the property.
Completed in February 2014, Palm Beach Outlets consists of eight small retail buildings surrounding two larger retail structures in a racetrack design layout plus 3,182 parking spaces and five out-parcels (one to-be-developed). The property is anchored by Saks Off 5th Avenue and is 95.8 percent leased to 120 additional tenants including Nike Factory Store, Forever 21, Gap, Banana Republic, JCrew, Ann Taylor Factory Store, Brooks Brothers, Under Armour, Vera Bradley and Kenneth Cole. Palm Beach Outlets is situated on 58.5 acres at 1751 Palm Beach Lakes Boulevard and shares access with the 300,000-square-foot Whole Foods-anchored Marketplace at the Outlets (not included in the loan). The property has one-half mile of frontage along Interstate 95 and direct access from the highway at Exit 71. This location has a daily traffic count of more than 195,000 cars per day and pulls from a trade area with an average household income of more than $77,000 annually. Palm Beach Outlets is the first and only retail outlet center in Palm Beach County, with no other outlet centers within a 55-mile radius.
The HFF debt placement team representing the borrower was led by senior managing director Riaz Cassum and director Chris Drew. Additional support was provided by senior real estate analyst Robyn King.
“Palm Beach Outlet’s irreplaceable infill location coupled with an impressive tenant lineup and superior sponsorship made this an ideal senior loan,” said Drew.
About Clarion Partners, LLC
Clarion Partners, an SEC registered investment adviser and FINRA member firm, has been a leading U.S. real estate investment manager for 33 years. Headquartered in New York, the firm has offices in Atlanta, Boston, Dallas, London, Los Angeles, São Paulo, Seattle and Washington, DC, as well as a presence in Mexico. With $35.8 billion in total assets under management, Clarion Partners offers a broad range of real estate strategies across the risk/return spectrum to its more than 200 domestic and international institutional investors. More information about the firm is available at www.clarionpartners.com.
About New England Development
For over thirty-five years, New England Development has taken a creative, entrepreneurial approach to real estate development and management—delivering and sustaining successful projects across a wide range of property types. These projects transform complex challenges into preferred locations, generate long-term value to communities, afford compelling opportunities for local and national businesses, and offer sought-after experiences to a wide range of consumers. Propelled by a senior management team led by Chairman and founder Stephen R. Karp, Vice Chairman Steven S. Fischman, and President Douglass E. Karp, NED has more than 50 million square feet of retail and commercial space to its credit. With deep roots—and experience—in all aspects of retailing, NED is a partner that anticipates and responds to the changing needs of retailers. More information about the firm is available at www.NEDevelopment.com.
Cornerstone Real Estate Advisers LLC, with subsidiary and affiliate offices in the U.S., UK, Europe, and Asia, is one of the largest global real estate investment managers. It provides core and value-added investment and advisory services, including a comprehensive suite of private and public real estate debt, equity and securities expertise and services, to institutional and other qualified investors around the globe. Cornerstone is a member of the MassMutual Financial Group. For more information, visit www.cornerstoneadvisers.com.
HFF and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 22 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF.