HFF Arranges $74M Loan for CONSOL Energy HQ
- Aug 28, 2008
Developer Horizon Properties has received a $74 million forward permanent loan for the just-completed two-building, 384,000-square-foot corporate headquarters for CONSOL Energy Inc. in Canonsburg, Pa., a Pittsburgh suburb.The 10-year, fixed-rate financing was arranged by the Pittsburgh office of Holliday Fenoglio Fowler L.P. through Nationwide Life Insurance Co. Mark Popovich, managing director of HFF’s Pittsburgh office, told CPN that Nationwide committed to the loan around the time construction on the buildings began, in December 2006, and held to the agreed-on terms despite the gyrations in the credit markets since then. CONSOL is leasing both buildings, a three-story, 75,000-square-foot facility and a four-story, 309,000-square-foot building, through 2028. The smaller building, Popovich said, will be occupied by Fairmont Supply Co., an industrial-equipment distributor that’s a wholly owned subsidiary of CONSOL. The buildings are in Southpointe II, an expansion of the completely built out Southpointe, an approximately 600-acre mixed-use (office, flex, industrial, retail and residential) park adjoining I-79 about 15 miles southwest of Downtown Pittsburgh. The original park has 2.2 million square feet of Class A office space and amenities that include a private 18-hole golf club, a 175-room Hilton Garden Inn, an ice and soccer arena, a health club and spa, a daycare center and several restaurants. Southpointe II is being built on the 230-acre site of the former Western Center State Hospital, just south of the original park. The master developer of Southpointe II is Horizon Properties, whose principals were involved in the development of the original Southpointe. With 20 bituminous coal mining operations in six states, CONSOL Energy is the nation’s largest producer of high-Btu bituminous coal. It’s also the majority shareholder in CNX Gas Corp., one of the largest U.S. producers of coalbed methane. CONSOL’s annual revenues total $3.8 billion. Holliday Fenoglio Fowler has 18 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry.