HFF Arranges $300M for Silicon Valley Offices

SAN FRANCISCO, CA–HFF has arranged $300 million in financing for a 59-building office/R&D portfolio with assets located throughout the Silicon Valley.

Working on behalf of a joint venture between two global investment managers, HFF placed the four percent, floating-rate loan with Blackstone Mortgage Trust, Inc.  Proceeds were used to refinance existing debt.

The 59-building portfolio totals 2.4 million square feet and encompasses three business parks and 38 stand-alone office buildings in five submarkets throughout the Silicon Valley – Mountain View, Sunnyvale, Santa Clara, San Jose and Milpitas. The portfolio is more than 80% leased to a diverse mix of tenants including Apple, SanDisk, The McGraw-Hill Company, Intel and Netflix.  Constructed between 1959 and 2000, the properties have been institutionally maintained and are well-suited to serve as corporate headquarters providing tenants with high visibility and abundant parking.

The HFF team representing the borrower was led by senior managing directors Eric Tupler and Bruce Ganong, director Chris Gandy and associates Leon McBroom and Ed Brown.

“This financing was an integral component of the overall portfolio strategy, which also included the recent HFF executed sales of Park Square and Marriott Business Park in Santa Clara.  The Blackstone team provided a customized financing solution that complements the portfolio strategy, and they worked tirelessly to meet our client's condensed timeline,” commented Ganong.

Blackstone Mortgage Trust, Inc., is a real estate finance company that primarily originates and purchases senior mortgage loans collateralized by properties in the United States and Europe. 

HFF (Holliday Fenoglio Fowler, L.P.) and HFFS (HFF Securities L.P.) are owned by HFF, Inc. HFF operates out of 21 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry.