HFF Announces the Sale and Financing of Mixed-Use San Diego Landmark

Dec 10, 2018 04:17 pm

HFF announces the sale of and acquisition financing for Liberty Station, which comprises 321,208 square feet of coastal, urban, infill retail space with dual grocery anchors and a world-class marketplace within a mixed-use destination in San Diego, California.

The HFF team marketed the property on behalf of the seller, McMillin Companies, and procured the buyer, a partnership of Seligman Group and Irvine-based Pendulum Property Partners. Additionally, working on behalf of the new owner, the HFF team placed the 10-year, fixed-rate loan and negotiated payoff of an extremely complex in-place participating loan.

Liberty Station is the premier live-work-play center of San Diego, and the transaction comprises six separate assets that have a total of 20 buildings: The Marketplace, The Landing, Building 193, Harbor Square, North Chapel and the 16.16-acre Sail Ho Golf Course. The 92-percent-leased property is home to a variety of tenants, including Vons and Trader Joe’s, Liberty Public Market and more than 30 food and beverage outlets, including Stone Brewing World Bistro and Gardens, Buona Forchetta, Nekter, Tender Greens, Breakfast Republic, Soda & Swine and Starbucks.

Liberty Station is situated within the greater 360-acre Liberty Station master plan, which includes 850 homes onsite; 350 hotel rooms; more than 400,000 square feet of office space; a nearly 100-acre park-like arts district that is home to more than 120 museums and galleries; and the High Tech School campus with more than 3,500 students in their elementary, middle and high schools. The property is in a high-barriers-to-entry area at the heart of the affluent Point Loma area along the San Diego Bay about 2.5 miles from the San Diego Airport. The area boasts a daytime population of more than 90,000 within a three-mile radius along with approximately 94,000 residents earning an average annual income of $107,480.

The HFF investment advisory team representing the seller consisted of managing directors Gleb Lvovich and Bryan Ley and senior managing director Tim Wright, along with Mike Moser of Retail Insite as the leasing expert.

The HFF debt placement team representing the new owner included executive managing director Kevin MacKenzie, Wright and senior director Brian Torp.

“This is a prime example of the value added by the HFF platform with our investment advisory team completing a high-profile sale and our debt placement team negotiating both the payoff of an existing loan and placing financing for the new buyer,” Lvovich said. “This transaction would not have been possible without all members of the HFF team working together to making the asset saleable through negotiations with the existing lender and then conducting a marketing process that led to a significant result for the seller and substantial asset for the buyer.”

“HFF worked with Mike Moser, partner with Retail Insite, a San Diego-based leasing firm, which, along with HFF, has been involved with Liberty Station and the McMillin Companies since the project’s inception,” Lvovich added. “Our partnership with Retail Insite was critical to a successful transaction.”

Holliday GP Corp. ("HFF") is a real estate broker licensed with the California Department of Real Estate, License Number 01385740.

About McMillin Companies

Founded in 1960, McMillin has more than 50 years of successful real estate investment, land development, and home building projects. McMillin continues to evolve to create real estate developments in urban, pedestrian-friendly and coastal constrained markets. McMillin aims to create inspiring moments through new places that create memorable experiences. McMillin is the proud developer of the award-winning Liberty Station, voted Base Realignment Community of the Year by the Association of Defense Communities. Learn more at www.mcmillin.com.

About Pendulum Property Partners

Pendulum Property Partners is a fully integrated owner, operator, developer and management firm of commercial and multi-family real estate. Visit http://pendulumpp.com for further information.

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.

Gleb Lvovich
CA Lic. #01496699
HFF Managing Director
(949) 798-4115

Bryan Ley
CA Lic. #01458927
HFF Managing Director
(310) 407-2120

Timothy Wright
CA Lic. #00947194
HFF Senior Managing Director
(858) 552-7690

Kevin MacKenzie
CA Lic. #01898953
HFF Executive Managing Director
(949) 253-8800

Kimberly Steele
HFF Digital Content/Public Relations Specialist
(713) 852-3420