HFF Announces $278.4M Financing for Colony Square in Midtown Atlanta

Nov 12, 2018 04:17 pm

Holliday Fenoglio Fowler, L.P. (HFF) announces the $278.4 million financing of Colony Square, a mixed-use office and retail asset located in the heart of Midtown Atlanta, Georgia. The iconic, 50-year-old destination represents the first mixed-use development in the Southeast and today, it is being reimagined into Midtown’s Living Room – an activated, arts-infused gathering place for the urban neighborhood’s 20,000 residents, 70,000 office workers, 25,000 college students and 6.1 million annual visitors to commune.

The HFF team worked on behalf of the borrower, Lionstone Investments and North American Properties, to secure the loan through Blackstone Mortgage Trust (NYSE: BXMT). Loan proceeds were used to retire the existing loan and fund future redevelopment plans for the asset.

Colony Square currently comprises two office buildings (Buildings 100 and 400) totaling 723,470 square feet of office space atop ground floor retail. The redevelopment of the landmark project, which is already underway, will include renovating the existing ground floor retail in Building 100 and 400. The street-level component will feature a collection of unique-to-market retail and chef-driven restaurants, such as Iselle Kitchen + Bar and its artfully prepared, West Coast-influenced Italian cuisine.

The next phase will include the construction of additional office and retail space. The retail component is 79 percent preleased to the highly anticipated food hall and iPic, an experiential movie theater with nine auditoriums, all equipped with 4K digital cinema technology; farm-to-glass cocktails with “ninja-like” servers; and a restaurant by three-time James Beard award-winning Chef Sherry Yard. The final phase of construction will include a 100,000-square-foot office tower (Building 500) with 18,000 square feet of ground floor retail on the northwest corner of the site.

With a highly programmed public realm, energized streets and a best-in-class merchandise mix, the reimagined Colony Square will feature more than one million square feet of premier office and retail space upon completion in late 2020. The property’s location at the corner of 14th and Peachtree Streets, known in Atlanta as “Main and Main,” is one of the most highly trafficked in the city, exposing the community to more than 25,000 cars and thousands of pedestrians daily. Additionally, Colony Square is located close to the Interstate 75/85 connector and is a short walk from the MARTA Arts Center station.

The HFF debt placement team representing the borrower included senior managing directors Colby Mueck and Ed Coco, associate Libby Malloy and analyst Laura Sellingsloh.

About Lionstone Investments

Lionstone Investments is a data-analytics driven real estate investment firm that conceptualizes, analyzes, and executes national investment strategies using proprietary algorithms and advanced analytics to understand the changing ways people in America want to live and work—Places for Productive People.® Lionstone Investments is a registered investment adviser subsidiary of Columbia Management Investment Advisers, LLC. For more information, please visit lionstoneinvestments.com.

About North American Properties

Headquartered in Cincinnati, with offices in Atlanta, Dallas and Fort Myers, North American Properties has developed 22 million square feet of commercial space and 19,000 residential units in 15 states and 67 cities. In the past three years, North American Properties has launched 36 projects totaling $1.1 billion in total capitalization.

About HFF

HFF and its affiliates operate out of 26 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform, including debt placement, investment advisory, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. HFF, HFF Real Estate Limited, HFF Securities L.P. and HFF Securities Limited are owned by HFF, Inc. (NYSE: HF). For more information, please visit hfflp.com or follow HFF on Twitter @HFF.

COLBY MUECK, (713) 852-3500
HFF Senior Managing Director
ED COCO, (404) 832-8460
HFF Senior Managing Director
KRISTEN MURPHY, (617) 338-0990
HFF Director, Public Relations