IRVINE, Calif. – (Realty News Report) – JLL Capital Markets has arranged a $182 million refinancing for Intersect, a Southern California office campus owned by Hines, a Houston-based real estate firm that operates around the world.
JLL worked on behalf of the borrower, a joint venture between Hines and a leading global investment management firm, to place the three-year, interest-only financing with MetLife Investment Management. Loan proceeds will be used to fund future leasing at the property and retire the existing loan that the same JLL team arranged for the borrower in 2018.
The Intersect is a four-building, mid-rise, Class A office campus totaling 452,060 SF.
Recently, the project has undergone a complete renovation with improvements to the interior and exterior to create a vibrant, creative office hub. The transformation took the campus from 13 to 78 percent leased at the time of closing, with 45 percent of the tenant roster being investment grade.
Located in Orange County, the 15-acre site is situated in the heart of the Irvine Business Complex, just two blocks north of Interstate 405 at the high-profile intersection of Main Street and Von Karman Avenue.
The property’s amenities include a shipping container beer garden and coffee shop, game pavilion, fire pits, chicken coop, bird aviary and sports court. Additional features at Intersect include indoor and outdoor workspaces; a new fitness center with Peloton bikes and classes, high-end locker rooms, spin studio and outdoor yoga lawn; private tenant terraces; and a 40-plus seat stadium-style conference center.
“Intersect’s vision of creating a next-generation office environment that promotes a balance of work and wellness is critical in today’s environment,” said Tom Lawless, Director in Hines’ Orange County office. “We are thankful for our partnership with JLL and impressed with their execution during this time.”
The JLL Capital Markets Debt Placement team representing the borrower was led by Kevin MacKenzie, John Chun and Nick Lench.
“Identifying a new lender, going under application and closing during the COVID-19 pandemic provided some challenges, but a team effort and great relationships got it across the finish line to a favorable outcome,” MacKenzie said. “Hines has created a top-class asset with Intersect, and we feel fortunate to have been a part of another step in the success story.”
Intersect is near retail, restaurants and entertainment offerings, including Irvine Concourse directly across the street, Park Place, South Coast Plaza and Fashion Island, as well as The District at Tustin Legacy.
Intersect comprises Buildings A, B, C and D, located at 17875 and 17877 Von Karman Ave. and 17872 and 17838 Gillette Ave., respectively, in the Airport-Area submarket of Orange County.
JLL Capital Markets has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.
July 10, 2020 Realty News Report Copyright 2020
Hines Refinances Office Campus