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9/15/16
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Holliday Fenoglio Fowler, L.P. (HFF) secured $62.5 million to refinance Irvine Crossings, a 395,673-square-foot, single-story datacenter and industrial property in the John Wayne Airport area of Irvine, California.
Working on behalf of the borrower, Menlo Equities, HFF placed the five-year, full-term interest only, fixed-rate financing with Deutsche Bank. The HFF debt placement team representing the borrower was led by senior managing director Kevin MacKenzie and associate Jamie Kline.
Irvine Crossings is situated on 21.16 acres at 17871 Von Karman Avenue and 17836 Gillette Avenue, one block north of the intersection of Von Karman Avenue and Main Street in Irvine’s Airport area. This location is less than one mile from John Wayne Airport and two blocks from Interstate 405. Six other datacenters are located nearby making this area within Irvine one of the most desirable areas for datacenters in Southern California, behind downtown Los Angeles and El Segundo.
The fully-leased building was renovated in 2000 and partially converted to a powered shell datacenter in 2013. A datacenter operator and an Internet technology company occupy the entire facility.
“Datacenter usage provides a unique set of challenges in obtaining aggressive financing, but we were able to utilize the superior location, and best in class sponsorship, in order to drive the market and obtain an optimal combination of a low rate, full-term interest only and desired leverage,” said MacKenzie.
Menlo Equities was founded in 1994 by Henry Bullock and Rick Holmstrom and is headquartered in Palo Alto. They describe the firm as a vertically integrated commercial real estate company engaged in the acquisition, development and operation of properties in select technology markets in the western United States. Since its founding, Menlo Equities has acquired or developed approximately $5 billion in assets comprising more than 100 separate transactions and they are looking for more with their Absolute Return Fund, with a focus on extremely well located, Class A office properties, NNN-leased to credit tenants.
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