HFF, Inc. : HFF closes sale of and arranges acquisition financing for 12-property office portfolio in Southern California

HFF closes sale of and arranges acquisition financing for 12-property office portfolio in Southern California

SAN DIEGO, CA, January 13, 2014 - HFF announced today that it has closed the sale of a 12-property office portfolio totaling nearly 1.1 million square feet throughout the Sorrento Mesa and Rancho Bernardo submarkets of San Diego, California.

HFF marketed the property on behalf of the seller, Kilroy Realty Corporation.  An affiliate of Starwood Capital Group Global, a leading private investment firm based in Greenwich, Connecticut, purchased the asset free and clear of existing debt.  HFF also arranged a variable-rate acquisition loan on behalf of the buyer through Wells Fargo Bank and CIBC as the senior lenders and Goldman Sachs as the mezzanine lender.

The institutional quality portfolio is 91 percent leased overall and includes one-, two-, and three-story office buildings located in the suburban markets of Sorrento Mesa and Rancho Bernardo.  The average completion date for the 12-building portfolio is 2002.

The HFF investment sales team representing the seller was led by senior managing directors Nick Psyllos and Ryan Gallagher, and senior managing director and co-head of HFF's national office investment sales platform Michael Leggett.

HFF's debt placement team was led by senior managing directors Tim Wright and Don Curtis and managing director Aldon Cole.

With more than 65 years of experience owning, developing, acquiring and managing commercial properties in West Coast real estate markets, publicly traded real estate investment trust Kilroy Realty Corporation (KRC), a member of the S&P MidCap 400 Index, is one of the region's premier landlords.  The company provides physical work environments that can advance creativity and productivity to serve a roster of dynamic, innovation-driven tenants that includes technology, entertainment, digital media and health care companies.  At September 30, 2013, the company's stabilized portfolio totaled 12.5 million square feet of office properties, all located in the coastal regions of greater Seattle, the San Francisco Bay Area, Los Angeles, Orange County and San Diego.  In addition, KRC has approximately 1.9 million square feet of new office development under construction with a total estimated investment of approximately $1.1 billion.  More information is available at www.kilroyrealty.com.

Starwood Capital Group is a private, U.S.-based investment firm with a core focus on global real estate.  Since the group's inception in 1991, the firm has raised more than $23 billion of equity capital and acquired over $45 billion in assets.   Starwood Capital Group currently has $32 billion of assets under management.  Starwood Capital Group maintains offices in Greenwich, Atlanta, San Francisco, Washington, D.C., Los Angeles and Chicago, and affiliated offices in London, Luxembourg, Paris, Mumbai and Sao Paulo.  Starwood Capital Group has invested in nearly every class of real estate on a global basis, including office, retail, residential, senior housing, golf, hotels, resorts and industrial assets.  Starwood Capital Group and its affiliates have successfully executed an investment strategy that includes building enterprises around core real estate portfolios in both the private and public markets.  Additional information about Starwood Capital can be found at www.starwoodcapital.com.

HFF (Holliday Fenoglio Fowler, L.P.) and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF).  HFF operates out of 22 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing.  For more information please visit www.hfflp.com or follow HFF on Twitter at www.twitter.com/hff.  

Holliday Fenoglio Fowler, L.P., acting by and through Holliday GP Corp., a real estate broker licensed with the California Department of Real Estate, License Number 01385740.

CONTACTS:
NICHOLAS PSYLLOS
Ca. Lic. #00788060
HFF Senior Managing Director
[phone]
[e-mail]

TIMOTHY WRIGHT
Ca. Lic. #00947194
HFF Senior Managing Director
[phone]
[e-mail]

KRISTEN MURPHY
HFF Associate Director, Marketing
[phone]
[e-mail]

HUG#1754458