HFF arranges $210M in financing across Arizona, other markets

Holliday Fenoglio Fowler, L.P. (HFF) announced today that it has arranged a total of $210 million in first lien financing for Westwood Financial Corp comprising 10 multi-tenant retail centers totaling 973,985 square feet in Arizona, California, Kansas, North Carolina and Texas markets.

HFF worked on behalf of the borrower, Westwood Financial Corp., in advising them on new loans and transferring of loans as part of their $1.2 billion consolidation and reorganization.  As part of the process, HFF placed several new loans, including a 10-year, $110 million, fixed-rate portfolio loan with a correspondent life company and a $100 million senior credit facility with Wells Fargo Bank’s Real Estate Capital Markets Group.  HFF will service the $110 million loan, proceeds of which will be used to re-finance existing loans and will assist in the corporate restructure setting Westwood for future growth.

“Kevin MacKenzie and the HFF team are the best in the business,” said Joe Dykstra, co-CEO of Westwood Financial.  “HFF has represented us on more than 40 loans for our affiliates over the last four years, and the sourcing and execution has always been leading edge.  Most recently in conjunction with our $1.2 billion consolidation and reorganization transaction, HFF arranged for a $100 million senior credit facility with Wells Fargo and a $110 million senior loan with a life company. The loans had to fund the same day as our closing consolidation.  Kevin and his team’s execution was flawless.”

“There were quite a few objectives we set out to achieve in this financing request, and the lenders were both able to deliver in order to meet Westwood’s needs with the most efficient terms available,” said senior Managing Director Kevin MacKenzie.  “The life company provided a low-cost, long-term, fixed-rate option using a forward rate lock, and Wells Fargo provided the flexibility needed to bridge assets into a strategic credit facility including a go forward solution on additional assets. It was a great introduction for Westwood to a new lending relationship with the life company and a new credit facility with Wells Fargo. Both the borrower and lenders did an excellent job working through a complicated closing process, including multiple assets, a newly-formed sponsorship entity and creative solutions for the extended time-line to close.”

The $110 million loan consisted of six assets including the 79,575-square-foot Village Plaza in Phoenix, Arizona; the 65,054-square-foot Plaza Del Rio in San Juan Capistrano (Orange County), California; and the 103,124-square-foot Stateline Village in Prairie Village (Kansas City), Kansas.  Additionally, the portfolio contains two Dallas-area centers, the 46,789-square-foot Hebron Parkway Plaza in Carrollton and the 226,414-square-foot Old Town Shopping Center in Dallas, and the 79,226-square-foot Steelecroft Shopping Center in Charlotte, North Carolina.  Ninety-one percent leased overall, key tenants of the portfolio include Harris Teeter, Sprouts, Hy-Vee, Tom Thumb, Vons, PetSmart, LA Fitness and Michaels.

The seed assets in the Wells Fargo facility included three grocery-anchored centers and one power center with a shadow grocery.  The properties are:  the 77,031-square-foot Camelback Village anchored by AJ’s Fine Foods in Phoenix, Arizona; the 89,506-square-foot Mercado Del Rancho anchored by Sprouts Farmers Market in Scottsdale, Arizona; the 30,300-square-foot Magnolia Vineland Shopping Center shadow anchored by Ralph’s in North Hollywood, California; and Legacy Village shadow anchored by Target in Phoenix, Arizona.  Ninety-five percent leased overall, other key tenants of the portfolio includes Ross Dress for Less, Beall’s, FedEx Office, Orange Theory, Steak 44, Famous Footwear, AutoZone, Orange Theory Fitness and Chipotle.

The HFF debt placement team representing the borrower consisted of MacKenzie, director Jim Curtin, associate director Cory Fowler, associate Jamie Kline and real estate analyst Lauren LaFever.


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