in the media: Acquisition Announcement

Northridge Capital Acquires Class-AA Office Campus In CityPlace - Houston's Premier Mixed-Use Urban Center

WASHINGTON, April 23, 2019 /PRNewswire/ -- Northridge Capital, LLC, the Washington, D.C.-based real estate asset management firm, today announced that it, along with its partner KAMCO Investment Company, a Kuwaiti based asset management and investment banking firm with one of the largest AUMs in the Middle East, has purchased HP Plaza in CityPlace at Springwoods Village, a newly-developed urban center in north Houston, Texas and home to the 385-acre ExxonMobil corporate campus. The acquisition is expected to generate an annual net cash yield of 7.50% across the target holding period.

Completed in November of 2018 and built to Class-AA standards, HP Plaza houses HP, Inc., which occupies 100 percent of the Premises pursuant to a long-term lease.  The Property, located in Springwoods Village, sits on 11.78-acres and features two buildings, totaling 378,402 rentable square feet. Springwoods village is also home to the 385-acre ExxonMobil corporate campus. The newly constructed Property is designed for sustainability and offers efficient, rectangular floor plates, structured parking at a ratio of 6.00 per 1,000, modern interior finishes with exposed ceilings and "office of the future" workspaces.  The office campus provides top-tier tenant amenities including a full-service cafeteria and dining room with seating for up to 330 people, coffee shop and juice bar, and a fitness center with men's and women's locker rooms.

"Our client/partners – offshore institutional and high-net worth individual investors – focus on Class A properties with strong cash flows from credit tenants that are strategically located in dynamic markets well-positioned to capitalize on future momentum and growth," said David Jackson, President of Northridge Capital.  "While this asset certainly meets those criteria, we are especially gratified to complete our first transaction with KAMCO Investment Company, one of the most active and sophisticated Gulf region investors in US commercial real estate." 

"We are excited to partner with Northridge Capital and HP, Inc. on this highly desirable asset located in what we believe will be the most dynamic mixed-use environment in Houston.  We are especially thrilled that the property is 100% powered by renewable energy sources and is strategically located at the confluence of the I-45 and the Grand Parkway. This acquisition is in line with KAMCO's commitment towards scaling its real estate portfolio through diversified assets," said Mohammad Al-Othman, Senior Vice President and Head of the Alternative Investments Department at KAMCO.

"HP Plaza checks the three boxes Northridge Capital looks for when pursuing single tenant opportunities: 1) strong credit quality and cash flows; 2) desirable underlying, functional real estate and 3) a dynamic suburban/urban location that will cater to the workforce of the future and serve as a recruiting tool for the tenant.," said David Etemadi, Vice President of Acquisitions for Northridge Capital.  "We believe more and more Fortune 500 companies will choose to locate in these types of locations around the country in the 'arms race' for the best human capital."

Apollo Global Management, on behalf of Athene, provided Northridge Capital with a five-year, fixed rate loan to complete the purchase and financing of HP Plaza.

HFF's Houston office represented the seller, led by Jeff Hollinden and Trent Agnew. Chris Hew and Cary Abod, also of HFF, secured the financing on behalf of the borrower.

About Northridge Capital, LLC
Northridge Capital, LLC, based in Washington, D.C., is an independent real estate asset management firm that has invested in 52 assets on behalf of investors, with a combined acquisition value of $1.26 billion. Since its founding in 1997, the company has focused on generating superior risk-adjusted returns for international high net-worth individuals and institutions. It acquires, manages and sells real estate assets across a wide variety of property types and geographic areas.  For more information, visit www.northridgecapital.com.

About KAMCO
KAMCO Investment Company K.S.C (Public) is a premier investment company based in Kuwait. The Company is one of the leading investment firms in the Gulf region in terms of assets under management (AUM) and is regulated by the Capital Markets Authority.  Established in 1998 and listed on the Boursa Kuwait in 2003, KAMCO is a subsidiary of United Gulf Bank (UGB). In 2018, KAMCO acquired a majority stake of 69.528% in Global Investment House K.S.C.C. ("Global"). The Company has established itself as a regional leader in providing innovative products and services to its clients, enabling it to increase AUM to over USD 12.97 billion (as of 31 December 2018) and achieve a strong track record of 131 successful investment banking transactions worth around USD20.4 billion (as of 31 December 2018).

With almost two decades worth of experience in conducting business with in investment industry, KAMCO has successfully established a robust reputation in the region, driven by its performance, prudent and conservative investment philosophy, solid business model and fundamental belief in implementing the highest standards of transparency, which has consistently commanded the goodwill of a wide and growing patron-base.  Through its strategy, the Company aims to continue building upon its core competencies to provide the MENA region with innovative investment management consultancy and services, in addition to financial services that meet the needs of clients through value-added investment products and a cautious investment approach that is supported by an experienced team and strong track record.

KAMCO Investment Company (DIFC) Limited (KAMCO DIFC) is a wholly owned subsidiary of KAMCO Investment Company, incorporated in the Dubai International Financial Centre and regulated by the Dubai Financial Services Authority. 

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.

article of interest: hospitality

Modern Chalet | Aspen — W Aspen & The Sky Residences at W Aspen Reinvent the Alpine Escape

By Linda Hayes

Anyone who remembers the 2017 ski season closing party at The Sky Hotel knows that what now stands in its place, the new W Aspen and The Sky Residences at W Aspen, has a lot to live up to. Specifically, a reputation as one of Aspen’s foremost places for fun and frolic. (Its ’80s iteration, the Aspen Club Lodge, held its own as well.)

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Launching this summer as parent company Marriott International’s only alpine resort escape property in the United States, the W Aspen and The Sky Residences at W Aspen promise a youthful, energetic vibe and conviviality for locals and visitors alike. Aspen’s historical and cultural legacy lives on, right at the outset. “W Aspen and The Sky Residences at W Aspen are a great example of how the true spirit of a property can be maintained, while elevating the experiences of the next generation of travelers and residents,” says John Rowland, of Rowland+Broughton, architects on the project. “The design concept of a modern ski chalet—including long, sloping rooflines—that was prevalent in Aspen when skiing was first introduced, links Aspen’s past, present and future.”

Interiors within the 88-room hotel and 11 W-branded fractional Residences feature bespoke furnishings, details and accents that speak to both Aspen’s heritage and inherent decadence. Well-being of body, mind and spirit, an ode to Aspen’s historical credo, is addressed via a split-level living room-lounge, the 39º lounge (think high-style cocktails and light fare), topped off by the 8,000-squarefoot WET Deck’s heated pool and hot tub, firepit and cabanas, and 360-degree town and Aspen Mountain views.

In the Media: Office

5 Months After Opening, Chapel Hill Office Building Fetches Hefty Price Tag

The string of high-dollar sales in the Triangle’s hot office market has continued into the new year with the $19.9 million sale of a new office building in Chapel Hill.

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The developers and capital partners behind the new Station at East 54 project have sold the 48,000-square-foot building to Durham investor Mattie Equity.

The deal is valued at more than $416 per square foot, making it one of the priciest in the Triangle in recent years. The new Midtown Plaza office building in Raleigh’s North Hills sold less than a year ago for $385 per square foot, while Durham's Hock Plaza I building sold at the end of 2017 for $434 per square foot.

East West Partners developed the Station at East 54 building, with Northridge Capital serving as a capital partner. For East West Partners Development Director Lee Perry, the sale indicates the demand for office in Chapel Hill, despite the market’s reputation as being a difficult place to develop.

“If you can get it built, it leases up,” Perry says. “There’s investor demand for it. I think it speaks to the strength of the submarket here.”

HFF broker Scot Humphrey, who represented the sellers in the deal, says it shows that prominent office sales are approaching the price tags seen in comparable markets, such as Charlotte and Nashville.

Rents at the building are at about $36.50 per square foot, near the top of the Triangle market, he says. The deal could also grease the wheels for other high-price transactions in the region. “It will hopefully make things easier for office developers to rationalize developing new buildings, knowing they can exit at a price above $400 per square foot,” Humphrey says.

Efforts to jump-start Station at East 54 date back to 2014, when the town of Chapel Hill issued a request for proposals seeking a partner to redevelop a fire station site on Hamilton Road.

Once the town selected East West Partners as its partner, the fire station was demolished to make way for the office building and a new three-bay fire station.

Under the terms of the public-private partnership, East West Partners agreed to contribute $1.8 million to the town to help with construction of the new fire station, while the town provided the land for the office building development.

The project opened in September and is located two miles from the UNC-Chapel Hill campus. The building, which rises 6 stories, counting two levels of parking, is already fully leased to two tenants: TrueBridge Capital Partners and coworking provider Spaces, a subsidiary of Regus. With 33,000 square feet, Spaces occupies a majority of the building.

The sale also shows that investors are willing to pay a premium, even when a coworking provider occupies a significant portion of a building. As Spaces and competitor WeWork have risen to prominence, developers and analysts have raised questions about how the coworking providers will fair when the economy hits a rough patch. In the case of the Station at East 54, Spaces' large presence in the building didn't stop an investor from paying top dollar.

The project overlooks the UNC Finley Golf Course and is next to the walkable East 54 mixed-use development, which includes retail shops, apartments, luxury condos and a 130-room Aloft Hotel. East West Partners also developed East 54 and still owns the office and retail components of the development.

The buyer, Mattie Equity, lists Kathleen Schneider as its manager. Schneider has been behind a number of real estate investment deals throughout the Triangle, including the development of the Indigo Apartments on Page Road, which sold for $59 million at the end of 2018.

In the Station at East 54 deal, the HFF investment advisory team of Humphrey, Ryan Clutter, Chris Lingerfelt and Zack Drozda represented the sellers.

In the Media: Office Development

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CBRE|Raleigh is pleased to announce the groundbreaking and first leases for the upcoming Crabtree Terrace mixed-use site in Raleigh, NC. Co-working company Spaces has signed a lease for 31,794 square feet of office space and a high-end, large format restaurant has signed a lease for approximately 12,500 square feet of ground floor retail space. Longleaf Law Partners has also signed a lease for 8,000 square feet of office space in the project. This marks the fifth location for Spaces in the Triangle. Longleaf will relocate from its existing office which is currently located in the Gateway Access building off Lake Boone Trail.

Crabtree Terrace is a mixed-use project that is being developed by East West Partners. The site will contain 145,000 square feet class A office space and 28,000 square feet luxury ground floor retail. Crabtree Terrace will sit adjacent to a luxury hotel and conference center that will be home to a rooftop bar and full-service restaurant. Construction on the project is now underway with an expected delivery of Q4 2019.

“We are thrilled to be underway with this exciting new mixed-use project. The Crabtree Valley submarket always has been and continues to be one of the Triangle’s strongest performing commercial districts. We have a great deal of market interest in the project as is evidenced by the early leasing activity to date. We expect to build on that momentum over the coming months,” said Lee Perry, development director with East West Partners.

The project team for Crabtree Terrace includes Gensler and Kimley Horn leading the design, with Brasfield and Gorrie serving as the General Contractor.

Citizens Bank is providing a construction loan for the project, and equity financing is being provided by Northridge Capital, LLC of Washington, D.C. and SilverCap Partners of Charlotte, NC.  This is East West Partners’ third development in partnership with Northridge Capital and second with SilverCap Partners.

Crabtree Terrace is located at the intersection of Creedmoor Road and Glenwood Avenue, across the street from Crabtree Valley Mall. The site is expected to attract top tenants in this bustling, tight submarket that had a Q2 2018 vacancy rate of 3.8 percent for class A office space.

CBRE|Raleigh’s Advisory & Transaction Services|Investor Leasing group and Retail Services group are handling the office and retail leasing components of the project.