September – Briefs/Finance

Tishman Refinances French Office Tower for $571M; Federal Capital Partners Closes CRE Fund with $1.5B in Buying Power; Paramount/Colony Capital JV Closes on $481M Deal for Queens Trophy Tower; H&S Properties Lands $180M for Legg Mason Tower; Hersha Hospitality Secures $60M Refi; N.J. Distribution Center Lands $41.2M; JLL Sources $95M for The Curtis Center; CBRE Arranges $60M for L.A. Hotel.

Tishman Refinances French Office Tower for $571M

Tishman Speyer has completed a $571 refinancing on its Lumière Building, a 1.5 million-square-foot tower located in Paris. The loan came courtesy of a transaction headed by French insurer BNP Paribas. Tishman Speyer has called the 20-year-old building its own since 2006, when the company’s European Strategic Office fund acquired it from Blackstone for the equivalent of $834 million. In addition to Class A office space, the seven-story asset has roughly 100,000 square feet of retail space and 220,000 square feet of warehousing.

The BNP-led consortium of fellow French insurers Cardif, CNP and Predic were able to achieve a groundbreaking transaction. The financing deal is the first in Europe to be structured through a mortgage bond private placement secured by a first-ranking mortgage on the property. It also marks the largest real estate financing deal in France for a single asset since the glory days of 2007.

Federal Capital Partners Closes CRE Fund with $1.5B in Buying Power

Four years after closing its initial $230 million real estate private equity fund, Federal Capital Partners has closed on the $529.5 million FCP Realty Fund II L.P. The fund, which will allow for approximately $1.5 billion in investments, will focus on opportunities in the multi-family, office, retail and industrial sectors. Federal Capital Partners’ strategy focuses on sustainable cash flow, with recent investments heavily represented in the multi-family sector.

Paramount/Colony Capital JV Closes on $481M Deal for Queens Trophy Tower

SL Green Realty Corp. has completed the sale of the tallest New York City building outside of Manhattan, the 1.4 million-square-foot Queens office tower known as the Citigroup building. A joint venture of Paramount Group Inc. and Colony Capital L.L.C. bought the property for $481 million. As part of the transaction, the buyers will also assume $315 million in debt. SL Green, which had a 30 percent ownership stake in the property, reported that it garnered about $44 million in proceeds from the deal.

H&S Properties Lands $180M for Legg Mason Tower

H&S Properties Development Corp. has landed $180 million in permanent financing for Legg Mason Tower, thanks to CBRE Group Inc. The 24-story, 612,613-square-foot trophy office asset is located in Baltimore’s Harbor East submarket. The 2009-built, LEED Silver (base building) and Gold (office finishes) tower serves as the world headquarters for asset management firm Legg Mason. Harbor East is a 70-acre, master-planned, mixed-use waterfront project situated along Baltimore’s Inner Harbor.

Hersha Hospitality Secures $60M Refi

Hersha Hospitality Trust has refinanced the outstanding debt on its Courtyard Miami Beach Oceanfront, a 263-room, fully renovated hotel in Miami Beach. The new $60 million loan has a fixed interest rate of 4.32 percent and is interest only for the full four-year term. The loan is scheduled to mature in July 2016 and maintains a one-year extension option. The initial funding is $45 million, with three additional draws of $5 million every 90 days to fund the construction of a new 93-room tower on an adjacent land parcel. Hersha acquired the Courtyard Miami Beach Oceanfront and the adjacent beachfront parcel in November 2011. The new tower should be completed in late 2013.

N.J. Distribution Center Lands $41.2M

Holliday Fenoglio Fowler L.P. has arranged $41.2 million in construction financing and joint venture equity for the development of Middlesex Logistic Center, a 570,100-square-foot distribution center located in Edison, N.J. The project is being developed by JG Petrucci Co. Joint venture equity was provided by institutional investors advised by J.P. Morgan Asset Management. M&T Bank is providing the construction loan. The LEED-certified warehouse and distribution center is due for completion in 2013.

JLL Sources $95M for The Curtis Center

Jones Lang LaSalle Inc. has landed $95 million in permanent financing for Curtis Partners L.P.’s The Curtis Center, an 885,000-square-foot Class A office asset located in Philadelphia. The General Services Administration occupies a quarter of the 93 percent-occupied property, though there is a roster of more than 40 tenants. More than $4.3 million in capital improvements have been invested in the property over the past five years.

CBRE Arranges $60M for L.A. Hotel

CBRE Group Inc.’s capital markets group has arranged for the permanent financing of Hilton Los Angeles Airport for $60 million. The 17-story hotel is located on West Century Boulevard next to Los Angeles International Airport. The 1,234-room asset is currently undergoing a $15.5 million guest room renovation. Jonathan Rice, senior vice president of the company’s Atlanta-based debt and equity team, represented the owner in the transaction.