HFF, Inc. : $150 million construction loan arranged by HFF for Los Angeles
LOS ANGELES, CA, April 16, 2013- HFF announced today that it has arranged
$150 million in construction financing for Runway, an urban, mixed-use
development in the West Los Angeles community of Playa Vista.
The development team of Lincoln Property Company and Phoenix Property Company
has begun construction on the site, which will consist of 420 multi-housing
units and approximately 250,000 square feet of mostly retail space. Scheduled
for a grand opening in 2014, Runway will be anchored by a first-class slate of
retail tenants that include Whole Foods, Cinemark Theaters and CVS.
HFF worked on behalf of the borrower to secure the loan through a syndicate of
banks led by Bank of America. HFF also arranged the equity financing through
Alcion Ventures, a Boston-based real estate private equity firm.
David Binswanger, executive vice president of Lincoln Property Company,
commented, "Our company has been involved with Playa Vista since 2006 when we
developed more than 800,000 square feet of creative office space in Playa
Vista. We are excited to have partners who have the same vision as we do, and
we look forward to continuing our commitment to the community by offering a
visionary project that will be Playa Vista's 'Town Center.'"
Runway will be the entertainment and retail hub of Playa Vista, the first new
community to be established on the westside of Los Angeles in more than 50
years. The community features residential, commercial, retail and open space,
creating a place to live, work, shop and play. Situated just east of the
Pacific Ocean, Playa Vista is nestled below the bluffs of Westchester,
adjacent to the Ballona Freshwater Marsh and within easy reach of Santa
Monica, Venice, the South Bay, Century City and LAX.
"We are very excited to have capitalized the development of Runway and look
forward to seeing the energy and excitement that will follow its successful
completion," said Doug Bond, senior managing director of HFF in Los Angeles,
who represented the sponsors in this transaction.
The developers have carefully assembled a team with exceptional talent in
architecture, landscape design and real estate development and management.
Ensuring that Runway becomes a lifestyle destination without peer are
co-developers, Lincoln Property Company and Phoenix Property Company, both
nationally-recognized, diversified real estate firms noted for their extensive
track records in developing award-winning real estate projects. Along with
Lincoln and Phoenix, Paragon Commercial Group is providing expertise in the
design, implementation and execution of the retail center at the property.
Runway's architect is Scott Johnson of Los Angeles-based Johnson Fain, an
internationally recognized design studio in architecture, planning and
interior design. Runway's landscape architect is Rios Clemente Hale Studios,
a multidisciplinary landscape architecture design firm known for a
consistently high-quality body of work displaying a broad stylistic range.
Alcion Ventures, founded in 2004, is a Boston-based real estate private equity
firm that seeks to create value through the acquisition, repositioning, or
development of real estate assets and by forming strategic relationships with
experienced operating partners. Alcion Ventures executes a high-yield
investment strategy with uniquely positioned real estate in durable locations
within select high-barrier-to-entry markets. Alcion currently manages capital
on behalf of a diversified investor base, including major pension funds,
endowments and foundations, family offices, and private individuals from the
United States, Canada and Europe.
Lincoln Property Company, founded in 1965 by its chairman Mack Pogue, is a
privately-owned real estate firm involved in real estate investment,
development, property management and leasing worldwide. Lincoln has offices in
all major markets of the U.S. and throughout Europe. Lincoln's cumulative
development efforts have produced over 100 million square feet of commercial
space and over 185,000 multifamily residential units. Lincoln Property
Company is one of the largest commercial real estate companies in the world.
Phoenix Property Company was formed in 1994 to focus on specific multifamily
development opportunities. Since its inception, PPC and the affiliated
GrandMarc, have developed residential and mixed-use communities with a
construction cost of over $1 billion. These properties comprise over 6,739
units and 240,835 SF of retail space. PPC develops in partnership with
outside equity investors, many of which have chosen to invest in more than one
project. Significant institutions such as AIG Global Real Estate, Behringer
Harvard, Brookfield Real Estate Opportunity Fund and IBV Real Estate have
chosen to invest in several PPC developments.
HFF (Holliday Fenoglio Fowler, L.P.) and HFFS (HFF Securities L.P.) are owned
by HFF, Inc. (NYSE: HF). HFF operates out of 21 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. www.hfflp.com.
HFF Senior Managing Director
HFF Managing Director
HFF Associate Director, Marketing
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information contained therein.
Source: HFF, Inc. via Thomson Reuters ONE
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