HFF secures $15 million refinancing for repositioning of 888 Tennessee in the Dogpatch neighborhood of San Francisco
SAN FRANCISCO, CA – August 1, 2017 – Holliday Fenoglio Fowler, L.P. (HFF) announced today that it has secured a $15 million refinancing for 888 Tennessee Street, a 40,000-square-foot industrial building fully leased to Amazon in San Francisco, California.
Working on behalf of the borrower, The S.Hekemian Group, HFF placed the 10-year, fixed-rate loan with Principal Commercial Capital, Principal Real Estate Investors’ CMBS platform. Principal Real Estate Investors is also the primary servicer of the loan, proceeds of which will be used to refinance the existing mortgage on the property.
888 Tennessee Street is a warehouse fully-leased to Amazon. Located one block west of Third Street, the building is in San Francisco’s Dogpatch neighborhood, an area with multiple restaurants, breweries and other retail destinations in addition to proximity to Interstate 280.
The HFF debt placement team was led by director Chris Gandy.
“888 Tennessee is extremely well located in the heart of the San Francisco’s Dogpatch neighborhood with convenient access and walkability to restaurants, shops and transit,” Gandy said. “This facility acts as the first Amazon Prime Now location in San Francisco, illustrating the extreme demand for last-mile facilities from the e-commerce industry. We feel that we are in the infancy of a shift to last-mile distribution facilities in dense, in-fill urban environments. The property’s location will only improve over time with the development of Pier 70, the Golden State Warriors Stadium, Uber’s HQ campus and the continued expansion of UCSF.”
About The S.Hekemian Group
The S.Hekemian Group (SHG) develops high-quality, highly-finished real estate for long-term ownership. With over 80 years as one of the country’s most stable property owners and developers, SHG’s significant and highly selective portfolio includes luxury residential, office, mixed-use and retail/lifestyle properties located in the strongest demographic areas of New Jersey, the Northeast United States, and California. The company owns assets both in the private form and also through the First Real Estate Investment Trust of NJ, a publicly-traded REIT (trading under the ticker symbol “FREVS”), of which the Hekemian family was a founding member. Learn more at shg.us.com.
About Principal Real Estate Investors
Principal Real Estate Investors manages or sub-advises $73.3 billion in commercial real estate assets*. The firm’s real estate capabilities include both public and private equity and debt investment alternatives. Principal Real Estate Investors is the dedicated real estate group of Principal Global Investors, a diversified asset management organization and a member of the Principal Financial Group®.
*As of 31 March 2017
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.