HFF secures $339 million financing for Five Point Gateway office/R&D campus in Irvine, California
NEWPORT BEACH, CA – August 11, 2017 – Holliday Fenoglio Fowler, L.P. (HFF) announced today that it has secured $339 million in financing for Five Point Gateway, a four-building office/R&D campus in Irvine, California.
HFF worked exclusively on behalf of the borrower, a newly formed limited liability company comprising a subsidiary of Five Point Holdings, LLC (NYSE: FPH), which holds a majority of the equity interest, and two other investors. The five-year, floating-rate loan was provided through Starwood Property Trust, Inc. The borrower is acquiring the assets through a partial sale leaseback with investment-grade tenant, Broadcom Corporation, which is the project developer after it acquired the land in order to build a corporate campus.
The newly named Five Point Gateway, which is nearing the completion of construction, will comprise more than one million square feet of office/R&D space. Designed by renowned architecture firm Gensler, the buildings are located at 15101, 15131, 15161 and 15191 Alton Parkway and are part of the larger 72-acre Great Park Neighborhoods® master-planned community in the Irvine Spectrum submarket. Broadcom plans to leaseback 15101 and 15191 Alton Parkway, which total 640,944 square feet, or 64 percent of the total portfolio, on a triple-net basis. Confirmed tenants of the other two buildings at 15131 and 15161 Alton Parkway will include Lennar Corporation and Five Point, with the remaining 232,223 square feet currently available for lease. The campus will feature a generous amount of open park space with attractive landscaping, best-in-class new construction and extensive amenities.
The HFF team included senior managing director Kevin MacKenzie, director Lee Redmond and associate Peter Thompson.
“We are excited to have had the opportunity to advise Five Point and its partners on the acquisition of this best-in-class asset and source financing on their behalf,” said Redmond. “This transaction marks the beginning of Five Point’s commercial operations in Irvine, and HFF is pleased to have been a part of this new endeavor.”
“Starwood was able to differentiate themselves during the marketing process due to their ability to provide the most efficient pricing at optimal leverage with extremely flexible terms under a compressed time frame,” said MacKenzie.
About Five Point
Five Point, headquartered in Aliso Viejo, California, designs and develops mixed-use, master-planned communities in coastal California. Five Point is developing vibrant and sustainable communities in Orange County, Los Angeles County and San Francisco County that will offer homes, commercial, retail, educational and recreational elements as well as civic areas, parks and open spaces. Five Point’s three communities are: Great Park Neighborhoods® in Irvine, Newhall Ranch® near Valencia, and The San Francisco Shipyard/Candlestick Point in the City of San Francisco. The communities are planned to include approximately 40,000 residential homes and approximately 21 million square feet of commercial space.
About Starwood Property Trust, Inc.
Starwood Property Trust (NYSE: STWD), an affiliate of global private investment firm Starwood Capital Group, is the largest commercial mortgage real estate investment trust in the United States. The company’s core business focuses on originating, acquiring, financing and managing commercial mortgage loans and other commercial real estate debt and equity investments. Through its subsidiary LNR Property, LLC, Starwood Property Trust also operates as the largest commercial mortgage special servicer in the United States. With total capital deployed since inception of over $35 billion, Starwood Property Trust continues to solidify its position as one of the premier real estate finance companies in the country.
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.