HFF Secures $81.38M Refinancing

On Aug 10, 2015

Florham Park-based Holliday Fenoglio Fowler, L.P. (HFF) announced that it has secured an $81.38 million refinancing for a 15-property, 2.58 million-square-foot industrial portfolio with a mix of warehouse, distribution and cold storage buildings located in New York, Ohio and Pennsylvania.

HFF worked on behalf of the borrower, Heritage Capital Group, LLC, to arrange the 10-year, fixed-rate loan through Principal Commercial Capital, a lending platform jointly formed by Macquarie Group and Principal Real Estate Investors.  HFF secured acquisition financing on this portfolio in 2006.

The 15 properties have clear heights ranging from 22’ to 40’ and have an average of four percent office finish.  Eight buildings have access to rail service.  At the time of closing, the portfolio was 92 percent leased to 31 tenants, including Staples, Inc.; Storage Mobility; McLane Food Service, Inc.; Victory Packaging LP; McGrann Paper; Scholastic Book Fairs, Inc.; Packaging Corporation of America and Global Foundries.  In New York, four properties are located in the Syracuse metropolitan area, and three are near Rochester and Albany, facilitating entry into the Northeast and New England markets.  Two buildings are near Columbus, Ohio, providing access to the Midwest, and three of the assets are in the Harrisburg, Pennsylvania, area, which provides access to the Mid-Atlantic markets.

The HFF debt placement team representing the borrower was led by senior managing director Jon Mikula.

“Having owned this portfolio for over nine years, Heritage has demonstrated an ability to grow occupancy and cash flow while creating efficiencies in the overall portfolio,” Miula said.  “This was validated by this transaction’s reception in the capital markets and with firms like Principal and Macquarie eventually providing the financing.”

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