HFF Arranges Funding for Boston-Area Mall, Houston Hotel
- Dec 20, 2011
December 20, 2011
By Scott Baltic, Contributing Editor
In separate transactions, Holliday Fenoglio Fowler has secured refinancing for two properties: a regional mall in suburban Boston and a boutique hotel in Houston.
HFF’s Pittsburgh office secured a permanent loan for the Square One Mall on Route 1 in Saugus, Mass. The amount of the 10-year, fixed-rate loan arranged with Deutsche Bank was not released. The securitized loan replaces maturing debt on the property and will also be sub-serviced by HFF.
The center’s owner is Mayflower Square One LLC, which includes entities partially owned by Simon Property Group, Teachers Insurance and Annuity Association of America and Canada Pension Plan.
The mall is anchored by Macy’s, Sears, Best Buy, T.J. Maxx & More and Dick’s Clothing & Sporting Goods. In its current configuration, the mall is the result of a $100 million redevelopment by New England Development Corp. of the former New England Shopping Center, which had closed in the mid-1980s. The redeveloped mall opened in August 1994.
HFF staff representing the borrower included executive managing director John Pelusi, managing director Claudia Steeb and director Lauren O’Neil.
One of the mall’s noteworthy features is a model of the planet Neptune, 4.5 inches in diameter, in the food court. It’s part of a scale model, at 1-to-400-million scale, of the entire solar system that was coordinated by Boston’s Museum of Science. The sun is depicted by an 11.6-foot half-sphere in the lobby of the museum’s Charles Hayden Planetarium in Boston, roughly seven miles distant.
In the second transaction, also announced Monday, the Houston office of HFF secured a $50 million, 10-year, fixed-rate, refinancing loan through Goldman Sachs Commercial Mortgage Capital LP for Hotel ZaZa in Houston’s Museum District.
The HFF team representing the borrower was led by senior managing director Mark West, director John Bourret and associate director Colby Mueck.
The 315-room luxury boutique hotel was built in 1925 as the Warwick Hotel and was substantially renovated before reopening in 2007 as Hotel ZaZa. Amenities include a spa, pool with private cabanas and full-service bar and grill, 21,000 square feet of meeting space, and a restaurant.
This property and a Hotel ZaZa in Dallas are affiliated with Preferred Hotels & Resorts.