HFF Arranges $85M Refi on 22-Property, 3 MSF Portfolio

An affiliate of a real estate fund managed by Oaktree Capital Management and Cohen Asset Management tapped Holliday Fenoglio Fowler to orchestrate a $85 million refinancing for a 22-property portfolio.

February 15, 2012
By Barbra Murray, Contributing Editor

A 22-property portfolio of predominantly industrial assets will get some refinancing, courtesy of an $85 million loan orchestrated by Holliday Fenoglio Fowler L.P. An affiliate of a real estate fund managed by Oaktree Capital Management L.P. and Cohen Asset Management Inc. tapped HFF to secure financing, and the commercial real estate and capital markets services firm came through with a loan provided by a correspondent life insurance company.

It’s not all about multi-family in the capital markets today. “Industrial is a very popular asset class right now,” Paul Brindley, senior managing director with HFF, told Commercial Property Executive. Brindley and John Crump, a director with HFF, represented the borrower in the transaction. Financing for the properties came in the form of a five-year, fixed-rate loan.

The 3 million-square-foot group of assets consists of 20 industrial properties and two office properties, offering accommodations ranging from warehouses to R&D/flex space to office accommodations. The portfolio — with properties located in Los Angeles, Silicon Valley, Seattle, Philadelphia, Dallas, Indianapolis and Cincinnati — features tenant rosters etched with such names as Amazon.com, KYDC L.L.C., Caterpillar Logistics Services Inc., GlaxoSmithKline and UPS Supply Chain Solutions Inc.

The lending community was quite responsive to the portfolio. “There was a lot of interest, as there is for industrial today,” Brindley noted. If one had to rank lenders’ preferences today, he said that while multifamily tops the list, grocery-anchored retail and industrial are on its heels.

And in the industrial sector, it seems bigger is better, in terms of dollar signs. “There are plenty of lenders that do deals under $10 million but there’s certainly a strong preference for doing larger deals these days.”