Harbert Management Corp buys Phoenix mixed-use project

Harbert Management Corp has acquired Phoenix, Arizona-based High Street, a mixed-use project. Harbert now owns the property in a joint venture with ScanlanKemperBard Companies. The seller was City North Associates LLC, a joint venture between a private investment fund managed by Wayzata Investment Partners LLC and ScanlanKemperBard Companies. Holiday Fenoglio Fowler represented the seller on the transaction and also arranged $93.5 million in financing for the project.


PHOENIX–(BUSINESS WIRE)–Holliday Fenoglio Fowler, L.P. (HFF) announced today that the sale of High Street, a 628,000-square-foot, high-profile mixed-use project containing 99 multi-housing units; 174,705 square feet of retail, dining and entertainment options and 330,369 square feet of office space in Phoenix, Arizona, has closed.

HFF marketed the property on behalf of the seller, City North Associates, LLC, which is a joint venture between a private investment fund managed by Wayzata Investment Partners LLC and ScanlanKemperBard Companies, and procured the buyer, Harbert Management Corporation, which now owns the property in a joint venture with ScanlanKemperBard Companies. Additionally, HFF worked on behalf of the new joint venture to secure an acquisition loan through TPG RE Finance Trust.

High Street comprises 24.91 acres located at 5100-5450 East High Street along Loop 101 in northeast Phoenix. More than 160,000 residents live within a five-mile radius of the project, and the average household income is more than $95,000. Completed in 2008, High Street features three- and four-story office and multi-family buildings with ground floor retail plus two parking garages with more than 1,500 spaces total. Overall occupancy is at 83.7 percent, and major tenants include Sprouts, Kona Grill, La Bocca, Pinspiration, Mellow Mushroom, Blue Martini, Ocean Prime and Modern Margarita.

The HFF investment sales team was led by senior managing director Ryan Gallagher, managing director CJ Osbrink, senior director Ryan Fitzpatrick and real estate analyst Clark Cashion.

HFF’s debt placement team representing the borrower was led by senior managing directors Jeremy Womack and Tom Wilson.

About ScanlanKemperBard Companies
ScanlanKemperBard Companies is a real estate merchant banking firm that acquires, develops and manages “value-add” and opportunistic office, retail, industrial and mixed-use properties in the Western United States. The firm partners with institutions, family offices and high net worth individuals. Founded in 1993, SKB has completed $4.12 billion in activity including 28.1 million square feet.

About Harbert Management Corporation
Harbert Management Corporation (HMC) is a privately owned alternative asset management firm with approximately $5.1 billion in Regulatory Assets Under Management across 10 discrete asset classes. HMC’s investment strategies include European and U.S. real estate, seniors housing, European and U.S. growth capital, mezzanine debt, independent power, U.S. private equity and public securities. HMC’s U.S. real estate strategy has offices in San Francisco, California; Birmingham, Alabama; and Dallas, TX. The group has extensive experience in the West, Southeast, Southwest and Mid-Atlantic and is currently investing its sixth value-add fund in the past 15 years. Additional information about HMC can be found at www.harbert.net.

About TPG Real Estate Finance Trust
TPG RE Finance Trust (NYSE: “TRTX”) is the commercial real estate debt platform of TPG, a leading global private investment firm with approximately $75 billion of assets under management and 17 offices around the world. TRT is a balance sheet lender that originates large, transitional, floating rate first mortgage loans and select mezzanine loans secured by all major property types in major and select secondary United States markets. TRT invests and manages its $2.6 billion loan portfolio from offices in New York and San Francisco. For additional information, visit www.tpgrefinance.com.

TRT is part of TPG Real Estate (TPGRE) which also includes TPG Real Estate Partners, TPGRE’s equity investment platform. Collectively, the two platforms have more than $7 billion of assets under management across TPGRE and other TPG-sponsored vehicles. For additional information, visit www.tpg.com.

About HFF
Holliday Fenoglio Fowler, L.P., HFF Real Estate Limited (collectively, “HFF”), HFF Securities L.P. and HFF Securities Limited (collectively, “HFFS”) are owned by HFF, Inc. (NYSE: HF). HFF and its affiliates operate out of 24 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 sales, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF.