HFF Closes Sale and Arranges Financing for 3-Property Office Portfolio Adjacent to Houston’s Tanglewood and Memorial Villages Neighborhoods

Apr 05, 2019 04:17 pm

HFF announces that it has closed the sale of a three-property office portfolio totaling 544,291 square feet in an urban infill location adjacent to some of Houston’s most prestigious residential neighborhoods, including Tanglewood and Memorial Villages.

HFF marketed the property on behalf of the seller, a partnership led by Unilev Capital Corporation, and procured the buyer, CapRidge Partners, LLC. Additionally, HFF worked on behalf of the buyer to secure the four-year, floating-rate acquisition/bridge financing through New York Life Real Estate Investors on behalf of New York Life Insurance Company.

The portfolio comprises 1616 Voss, 7500 San Felipe and 6363 Woodway, which are positioned west of Houston’s Galleria area. The three assets are walkable to an abundance of retail amenities, including Whole Foods, Kroger, Trader Joe's and numerous dining options. Additionally, the portfolio is proximate to Houston Country Club, one of Houston’s oldest and most prestigious country clubs.

The portfolio will go through an extensive renovation and repositioning with roughly $15 million allocated across the three buildings. These improvements will include significant upgrades to building systems, comprehensive common area improvements and innovative tenant-centric amenities. The portfolio will be leased by Craig McKenna and Matthew Asvestas with Stream Realty Partners.

Dan Terpening, director at CapRidge Partners, said, “We are excited to expand CapRidge Partners’ presence in the dynamic Houston market. The portfolio provides a great opportunity to add value by utilizing our disciplined investment experience and operational excellence.”

The HFF investment advisory team representing the seller included senior managing director H. Dan Miller, senior director Martin Hogan and analyst Johnny Kight.

HFF’s debt placement team representing the new owner was led by managing director Jim Curtin and senior managing director Andy Scott.

Holliday GP Corp. ("HFF") is a Texas licensed real estate broker.

About Unilev Capital Corporation

Unilev Capital Corporation is a privately held real estate investment organization that also invests with a select, limited group of private and institutional partners to acquire well-located, income-producing commercial properties with both a short-term opportunistic strategy and a long-term, low-risk investment horizon. Unilev’s Houston portfolio includes Galleria Towers I and II, Galleria Financial Center, One and Three Riverway and other office and retail properties.

About CapRidge Partners

CapRidge Partners is a fully integrated investment management and operating company focused on value-add office properties in nine select U.S. markets, including Houston. Their strategy is to acquire well-located assets, below replacement cost, that offer opportunities to add value by providing proactive management, delivering enhanced customer service and wellness amenities, leasing to stabilized occupancies, marking-to-market expiring leases, and completing capital projects. Since 2012, CapRidge has purchased 33 office buildings.

About New York Life Real Estate Investors

New York Life Real Estate Investors is a division of NYL Investors LLC, a wholly-owned subsidiary of New York Life Insurance Company. Please visit New York Life Real Estate Investors’ website at http://www.newyorklife.com/realestateinvestors for more information.

New York Life Real Estate Investors is a full service, fully-integrated real estate enterprise with more than 100 professionals. The division has market-leading capabilities in origination, underwriting and investment in real estate equity products and related debt, including real estate equity investments, commercial mortgage loans, commercial mortgage backed securities and unsecured REIT bonds. With over $54.5 billion in assets under management as of December 31, 2018*, New York Life Real Estate Investors is actively seeking to acquire additional properties throughout the U.S.

Real Estate Investors AUM of $54.5B is gross and includes AUA ($1.6B), and debt ($0.6B) as of 12/31/18. Net AUM for Real Estate Investors is $53.9B as of 12/31/18.

About New York Life

New York Life Insurance Company (www.newyorklife.com), a Fortune 100 company founded in 1845, is the largest mutual life insurance company in the United States* and one of the largest life insurers in the world. Headquartered in New York City, New York Life’s family of companies offers life insurance, retirement income, investments and long-term care insurance. New York Life has the highest financial strength ratings currently awarded to any U.S. life insurer from all four of the major credit rating agencies**.

*Based on revenue as reported by “Fortune 500 ranked within Industries, Insurance: Life, Health (Mutual),” Fortune magazine, 6/1/18. For methodology, please see http://fortune.com/fortune500/.

**Individual independent rating agency commentary as of 7/30/2018: A.M. Best (A++), Fitch (AAA), Moody’s Investors Service (Aaa), Standard & Poor’s (AA+)

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.

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New York Life Insurance Company