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HFF secures $62.5 million financing for data center in Irvine’s Airport area


NEWPORT BEACH, CA – September 12, 2016 – Holliday Fenoglio Fowler, L.P. (HFF) announced today that it has secured a $62.5 million refinancing for Irvine Crossings, a 395,673-square-foot, single-story data center and industrial property in the Airport area of Irvine, California.

Working on behalf of the borrower, Menlo Equities, HFF placed the five-year, full-term interest only, fixed-rate financing with Deutsche Bank.

Irvine Crossings is situated on 21.16 acres at 17871 Von Karman Avenue and 17836 Gillette Avenue, one block north of the intersection of Von Karman Avenue and Main Street in Irvine’s Airport area.  This location is less than one mile from John Wayne Airport and two blocks from Interstate 405.  Six other data centers are located nearby making this area within Irvine one of the most desirable areas for data centers in Southern California, behind downtown Los Angeles and El Segundo.  The fully-leased building was renovated in 2000 and partially converted to a powered shell data center in 2013.  A data center operator and an internet technology company occupy the entire facility.

The HFF debt placement team representing the borrower was led by senior managing director Kevin MacKenzie and associate Jamie Kline.

“Data center usage provides a unique set of challenges in obtaining aggressive financing, but we were able to utilize the superior location, and best in class sponsorship, in order to drive the market and obtain an optimal combination of a low rate, full-term interest only and desired leverage,” said MacKenzie.

About Menlo Equities
Founded in 1994 by Henry Bullock and Rick Holmstrom and headquartered in Palo Alto, California, Menlo Equities is a vertically integrated commercial real estate company engaged in the acquisition, development and operation of properties in select technology markets in the western United States.  Since its founding, Menlo Equities has acquired or developed approximately $5 billion in assets comprising more than 100 separate transactions. Menlo continues to be an active buyer and is seeking additional acquisition opportunities for its Absolute Return Fund, with a focus on extremely well located, Class A office properties, NNN-leased to credit tenancy.

About HFF
HFF and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF).  HFF operates out of 23 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 or follow HFF on Twitter @HFF.



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