HFF arranges a $22.1 million bridge loan with $14.3 million of future funding for suburban Philadelphia office complex
PHILADELPHIA, PA - Holliday Fenoglio Fowler, L.P. (HFF) announced today that it has arranged a $22.1 million bridge loan with $14.3 million of future funding for Fort Washington Executive Center, a three-building, 393,067-square-foot, Class A office complex in Fort Washington, a suburb of Philadelphia, Pennsylvania.
HFF worked exclusively on behalf of a joint venture between Kairos Real Estate Partners and Artemis Real Estate Partners, LLC to secure the three-year, floating-rate loan through Citizens Bank. The sponsor originally purchased the property all cash in December 2014. Loan proceeds will be used to recapitalize the project with a first mortgage as well as fund future capital improvements and leasing costs. The loan has two one-year extension options.
This is the second joint venture between Kairos and Artemis, having successfully acquired and repositioned the 176,156-square-foot Triad office building located in King of Prussia in 2013.
Fort Washington Executive Center is comprised of three buildings located at 600, 601 and 602 Office Center Drive in Fort Washington, 18 miles northwest of Center City Philadelphia. The property is easily accessible by Route 309 and the Pennsylvania Turnpike. Fort Washington Executive Center was 73 percent leased at acquisition to tenants including Nutrisystem (corporate headquarters), AstraZeneca, McNeil and AmeriHealth. Allstate, a new tenant to the property, executed a lease for 25,000 square feet prior to the loan closing, which brought the occupancy up to 79 percent. Originally built in 1988, the property will undergo renovations to its common areas, restrooms, amenities (cafeteria and fitness center), conference and training facility, and landscaping.
The HFF capital markets team representing the borrower was led by managing directors Ryan Ade and James Conley with assistance from senior real estate analyst Mike Pagniucci.
About Kairos Real Estate Partners
Founded by 25-year veteran Stephen J. Gleason, Kairos Real Estate Partners is a regional real estate company that invests in and operates best-in-class office and mixed-use assets that include a blend of commercial, residential, cultural and institutional uses. Kairos partners with institutional as well as private investors to fund acquisitions across the risk spectrum where value can be added through leasing, hands-on asset and property management, and property repositioning. For more information, visit www.kairosrep.com.
About Artemis Real Estate Partners, LLC
Artemis Real Estate Partners, LLC is a private equity real estate investment manager that was founded in 2009 and is headquartered in the Washington D.C. metropolitan area. Artemis seeks to deliver attractive risk-adjusted returns to investors and manage institutional third party capital in a variety of real estate strategies. Currently Artemis manages approximately $2 billion of equity that targets debt and equity transactions with a risk profile of core plus, value-add, and opportunistic diversified across product type and geography.
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.