July – Briefs/Finance

Hines Closes $490M Fund forRussia, Poland; NGKF Lands $26.5M Hotel Refinance; Lowe, Guardian Life Form $164M Debt Venture; Troubled Chicago Retail Asset Lands $145M; Meridian Arranges $70M for New Orleans Office Property; Bay West Secures $93M for San Jose M-F Project; and NYC’s One SoHo Square Gets $170M.

Hines Closes $490M Fund forRussia, Poland

Hines has closed its Luxembourg-based Hines Russia & Poland Fund, a $490 million fund that will invest in Russian and Polish real estate. The fund will invest approximately 80 percent of its capital inRussiaand the remaining 20 percent inPoland. Fund equity was committed by financial institutions, sovereign wealth funds, pension funds, trusts and other institutional investors from Europe, Asia and the United States. It is Hines’ fourth fund formed to invest in the two countries.

The fund’s investments will be executed and managed by in-country teams led by country managers Lee Timmins in Russia and Mietek Godzisz in Poland. The fund has already allocated equity to three new retail projects in Russia: a big-box development in Moscow and outlet-mall developments in St. Petersburg andMoscow.

NGKF Lands $26.5M Hotel Refinance

Newmark Grubb Knight Frank’s capital group has arranged a $26.5 million refinance of the National Hotel, a 151-room Art Deco hotel located onCollins AvenueinMiami. The 1939-built property was purchased by private real estate investor Delphine Dray in 2007 and recently underwent a series of major renovations. Terms of the refinance included a fixed-rate, 10-year conduit mortgage facility provided by a global investment banking firm.

Lowe, Guardian Life Form $164M Debt Venture

Lowe Enterprises Investors and The Guardian Life Insurance Company ofAmericahave joined forces to create LEI Senior Finance L.L.C., a partnership with a public pension fund that will invest an estimated $164 million in high loan-to-value senior debt collateralized by assets across the country. LEI Senior Finance L.L.C. will focus its investment efforts on loans attached to operating hotel, office and multi-family assets. Only major markets are up for consideration.

Troubled Chicago Retail Asset Lands $145M

Canyon-Johnson Urban Funds and McCaffery Interests, the owners of the Roosevelt Collection inChicago’sSouth Loop, have closed on a $145 million senior loan with Prime Finance to reposition the mixed-use development’s 400,000-square-foot retail portion. The Roosevelt Collection, a $350 million transit-oriented development, has a 342-unit residential portion that is more than 90 percent occupied. The retail segment is currently anchored by a movie theater.

Meridian Arranges $70M for New Orleans Office Property

Meridian Capital has landed $70 million in mortgage financing for Place St. Charles, a 1.3 million-square-foot, Class A asset located inNew Orleans. The firm acted on behalf of the office tower’s owner,201 St. Charles PlaceL.L.C., in securing the funds. The 52-story tower features 39 floors of office space above 58,000 square feet of retail. Current tenants include JPMorgan Chase & Co., Capital One and GE Capital, which signed a long-term lease for 60,000 square feet in April.

Bay West Secures $93M for San Jose M-F Project

Bay West Development’s plan to build a luxury apartment community at 199 River Oaks Parkway inSan Jose,Calif., will move forward, thanks to Jones Lang LaSalle Inc.’s capital markets team, which has sourced $93 million in construction financing. JLL worked with capital advisory firm Regency Capital Partners to land a commitment from affiliates of Berkshire Property Advisors L.L.C. to provide equity for the 292-unit project.

NYC’s One SoHo Square Gets $170M

Starwood Property Trust has originated a $170 million first-mortgage loan on a complex that will be known asOne SoHo SquareinManhattan’s Midtown district. The two Class B buildings that will combine to form the development comprise a collective 600,000 square feet of office and retail space. The development plan calls for a repositioning that will transform the space into Class A digs. The first-mortgage loan will have an initial funding of $135 million, with $35 million available for future advances to pay for tenant improvements.