HFF Arranges $125M Financing for L.A. Office Portfolio
- Nov 08, 2011
November 8, 2011
By Nicholas Ziegler, News Editor
In the slowly expanding Los Angeles office market, Holliday Fenoglio Fowler L.P. has helped the recovery by arranging a $124.9 million refi package for four office properties that total 543,162 square feet in Burbank and L.A.
HFF worked on behalf of international real estate investment and services company Kennedy Wilson to secure the $104.9 million senior loan through GE Capital Real Estate and the $20 million mezzanine loan through an institutional investment advisor. The loans have three-year terms, and the proceeds refinanced debt used to acquire the portfolio in 2007.
The properties within the portfolio include 303 and 333 North Glenoaks Blvd. and 300 East Magnolia Blvd. in downtown Burbank, as well as 6100 Wilshire Blvd. in Los Angeles. Tenants in the 84 percent leased portfolio include Turner Broadcasting, MTV Networks, Rich Crest Animation, the University of Redlands and the Department of Justice.
According to a third-quarter research report by services firm Marcus & Millichap, the Los Angeles area is expected to see continued tightening through the end of 2011, but countywide absorption has remained positive for three consecutive quarters “as more businesses leased rent-reduced space in core hubs and speculative development ceased.” The Burbank area specifically saw a 0.1 percent year-over-year drop in its vacancy rate for 3Q11.