HFF arranges partial interest sale and financing for the redevelopment of ROW DTLA in Downtown Los Angeles
LOS ANGELES, CA – June 15, 2017 – Holliday Fenoglio Fowler, L.P. (HFF) announced today that it has arranged for a 37.5 percent minority interest sale and the refinancing of the existing debt for ROW DTLA in Los Angeles, California.
HFF worked on behalf of Atlas Capital Group and an institutional investment partnership managed by Square Mile Capital Management to admit the Healthcare of Ontario Pension Plan (“HOOPP”) into the partnership, as well as secure the $475 million, three-year floating-rate loan through Blackstone Real Estate Debt Strategies.
The newly formed equity partnership and debt commitment will further the repositioning and revitalization of this historic, mixed-use district encompassing 32 acres and more than 1.8 million square feet of office, retail, restaurant, entertainment and produce market space on the southern end of the Arts District of Downtown Los Angeles.
ROW DTLA, formerly known as the Los Angeles Terminal Market was built (1917-1923) alongside the Southern Pacific Railroad, and is the largest contiguous block of land in Downtown. Physically, it comprises eight buildings, a 3,827-stall parking garage, 5.2 acres of developable land, a fully operating produce market and more than 30,000 square feet dedicated to the arts and public space.
When complete, ROW DTLA will be home to more than 1.4 million square feet of creative office space, 100 unique merchants, and 15 restaurants including the world-renowned James Beard nominee, Tartine Manufactory that will include two restaurants, a coffee lab, marketplace and bakery. The other exciting brands at ROW will include Smorgasburg, Paramount Coffee Project, Rappahannock, J Brand, mitú, Go Get Em Tiger, Café Dulce, Hayato, Pikunico, A+R, 13 Bonaparte, Lust Covet Desire (LCD), Scent Bar, Yolk, Vrai & Oro, AHLEM Eyewear, Flask & Field, Milla Chocolates, Shades of Grey by Mica Cohen, dRA Clothing, Banks Journal, Bridge & Burn, Hancock Design, Poketo, Gossamer, Bodega, The Wicked Boheme, Nova Arts Salon, Tokyobike, Shadowbox, MVMT Theory, Bender Yoga, The Cartorialist, Jeff Morrical Studio, Jordan Zobrist and jig+saw. rowdtla.com
The HFF equity and debt placement team representing the ownership was led by senior managing directors Doug Bond and Paul Brindley and associate director Brad Greenway.
“With its rich history and wide variety of integrated uses onsite, ROW DTLA will be one of Los Angeles’ can’t miss destinations similar to places such as the Meatpacking District in New York,” said Bond.
“The extraordinary vision of the Atlas team and its partners has led to the creation of one of Los Angeles’ iconic assets that will be a destination for tenants, customers and tourists for years to come,” added Brindley.
About Atlas Capital Group
Atlas Capital Group, LLC is a full service real estate investment, development and management firm. Atlas invests in opportunistic, value-added real estate transactions globally. Atlas' portfolio consists of over $3.0 billion of residential, office and retail assets in New York City, Los Angeles, Washington, D.C., Miami, and London.
About Square Mile Capital Management
Square Mile Capital Management LLC is an integrated institutional real estate finance and investment management firm based in New York. Square Mile's large U.S. footprint, enhanced by the firm's strategic partnership with USAA Real Estate Company, enables Square Mile to leverage proprietary market insights through a unified sourcing and investment philosophy that positions the firm to capitalize upon opportunities through all phases of the commercial real estate cycle. Square Mile's opportunistic investment platform takes a value oriented approach to its activities, with an emphasis on opportunities to acquire or capitalize real estate assets or enterprises that are undervalued, complex or undercapitalized. Square Mile's commercial real estate debt platform provides customized capital solutions for real estate owners and developers throughout the United States. squaremilecapital.com.
About Healthcare of Ontario Pension Plan (HOOPP)
Created in 1960, HOOPP is a multi-employer contributory defined benefit plan for Ontario’s hospital and community-based healthcare sector with over 510 participating employers. HOOPP’s membership includes nurses, medical technicians, food services staff and housekeeping staff, and many other people who work hard to provide valued Ontario healthcare services. In total, HOOPP has more than 321,000 active, deferred, and retired members.
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.
Holliday Fenoglio Fowler, L.P., acting by and through Holliday GP Corp., a real estate broker licensed with the California Department of Real Estate, License Number 01385740.