Dealmaker: HFF Secures $451M for Condominiums, Mixed-Use, Multifamily

Michael Tucker mtucker@mba.org

October 24, 2018


Holliday Fenoglio Fowler, Houston, secured $451 million for commercial assets in Massachusetts, Tennessee and California.

The firm secured $341 million in construction financing and joint venture equity to develop The St. Regis Residences Boston, a waterfront condominium tower on one of the city's last remaining developable waterfront parcels. HFF Senior Managing Director Riaz Cassum, Senior Director Brett Paulsrud and Associate Andrew Gray represented developer Cronin Development, Boston.

To complete the capital stack, the team secured $306.5 million in construction financing from JPMorgan Chase Bank, New York and a $34.5 million joint venture equity partnership with private equity partner JCM Opportunity Fund I LLC.

In addition to 114 units in its 22 stories, The St. Regis Residences Boston, will include underground parking and a two-story restaurant.

In Memphis, Tenn., HFF Senior Managing Directors Brian Carlton and Jason Nettles arranged $85 million in permanent financing for 1.2-million-square-foot mixed-use development Crosstown Concourse, the largest historic adaptive reuse LEED Platinum redevelopment in the world.

A joint venture between Crosstown LLC, Crosstown Arts and Kemmons Wilson Cos. LLC received a 20-year fixed-rate permanent loan through JP Morgan Asset Management, New York.

Crosstown Concourse is a historic adaptive reuse of the former Sears, Roebuck & Co. catalog order plant and retail store that dates to 1927. The 12-acre property has been preserved and redeveloped with 645,700 square feet of commercial space, 65,000 square feet of retail space and 265 residential units averaging 1,044 square feet. Tenants include Methodist Le Bonheur Healthcare, Church Health, Crosstown Arts, Crosstown High School and Teach for America. The 95 percent leased property sees 3,000 visitors per day on average.

Midtown Memphis' Crosstown neighborhood is two blocks from the intersection of Interstates 40 and 240 and two miles from downtown.

HFF also secured $25 million in financing for The Line Lofts, a newly completed community in Los Angeles' Hollywood neighborhood with 82 residential lofts and flats.

A debt placement team led by Managing Director Mark Wintner worked for borrower Wilshire Skyline, Los Angeles, to arrange the 10-year, 4.45 percent fixed-rate loan through a life insurance company. The non-recourse loan replaced existing construction financing and includes a $5 million future earn-out component at stabilization. Wintner said the loan is among the first of its type to close through a new debt program that allows borrowers to close on long-term loans and lock in lower interest rates prior to being fully stabilized if the development can support strong underwriting and high appraisals. The property, which opened on Memorial Day weekend, achieved 75 percent occupancy within its first four months.

The Line Lofts is located at 1737 N. Las Palmas Avenue northeast of the Hollywood Boulevard and N. Highland Avenue intersection.

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