Dealmaker: HFF Arranges $337M in Financing

MBA NewsLink Staff

November 27, 2018


Holliday Fenoglio Fowler LP arranged $337 in financing for an Atlanta office/retail complex in Atlanta and and retail properties in Massachusetts and Florida.

ColonySquareIn Atlanta, HFF announced $278.4 million in financing of Colony Square, a mixed-use office and retail asset located in Atlanta, Georgia. The 50-year old complex was the first mixed-use development in the Southeast. The HFF team worked on behalf of the borrower, Lionstone Investments and North American Properties, to secure the loan through Blackstone Mortgage. Loan proceeds were used to retire the existing loan and fund future redevelopment.

Colony Square comprises two office buildings (Buildings 100 and 400) totaling 723,470 square feet of office space atop ground floor retail. Redevelopment will include renovating the existing ground floor retail in Building 100 and 400. The street-level component will feature restaurants.

The next phase will include construction of additional office and retail space. The retail component is 79 percent preleased to a food hall and iPic, an experiential movie theater with nine auditoriums. The final phase of construction will include a 100,000-square-foot office tower (Building 500) with 18,000 square feet of ground floor retail on the northwest corner of the site. One completed, Colony Square will feature more than one million square feet of premier office and retail space upon completion in late 2020.

The property's location at the corner of 14th and Peachtree Streets exposes the community to more than 25,000 cars and thousands of pedestrians daily. Additionally, Colony Square is located close to the Interstate 75/85 connector and is a short walk from the MARTA Arts Center station.

The HFF debt placement team representing the borrower included senior managing directors Colby Mueck and Ed Coco, associate Libby Malloy and analyst Laura Sellingsloh.

In Massachusetts, HFF provided $33 million to refinance North Beverly Plaza, a 197,471-square-foot, grocery-anchored retail shopping center in Beverly. The HFF team worked on behalf of the borrower, North Beverly Plaza, LLC, an entity of Mugar Enterprises Inc., to secure the long-term, fixed-rate loan through TD Bank.

North Beverly Plaza is off of Route 128 at 55 Dodge Street, 26 miles north of Boston. The 96-percent-leased property is anchored by a 65,000-square-foot Shaw's supermarket and features a diverse tenant roster, including CVS, People's United Bank, Staples and Chipotle.

InternationalDriveHFF's debt placement team representing the borrower consisted of managing director Greg LaBine and associate Amy Lousararian.

"This loan showed the benefit of refinancing early to access equity trapped in a low leverage existing financing, even in the context of having to pay a prepayment penalty," LaBine said. "HFF had been advising the borrower for years on the right time to pull the trigger, and the economics now made sense."

In Florida, HFF provided $26.156 million for purchase and $18.915 million in acquisition financing for International Drive Value Center, a 186,000-square-foot power center in Orlando.

The HFF team marketed the property on behalf of the seller, Retail Value Inc. A partnership between Collett Capital and Long Wharf Capital purchased the asset. Additionally, working on behalf of the new owner, the HFF team placed the five-year, floating-rate acquisition loan with TD Bank. Loan proceeds will be used for the acquisition and to fund future capital improvements.

International Drive Value Center is 95 percent leased and anchored by multiple national and regional tenants, including Bed Bath & Beyond, Ross Dress for Less, T.J. Maxx, dd's DISCOUNTS, Five Below and Dollar Tree. The center spans 23 acres and is at 5295 International Drive.

The HFF investment advisory team representing the seller included senior managing director Brad Peterson, senior director Whitaker Leonhardt and associate Michael Brewster. The HFF debt placement team representing the new owner consisted of senior managing director Travis Anderson, senior director Cory Fowler and managing director Rebecca Van Reken.

"The future of the asset looks even brighter given the continued success of the nearby Orlando International Premium Outlets combined with the new nearby mixed-use developments," Leonhardt said.

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