IRVINE, Calif. – JLL Capital Markets secured a $182 million refinancing for Intersect, a Southern California office campus owned by Hines, the global real estate investment, development and management firm headquartered in Houston.
Acting on behalf of the borrower — a joint venture between Hines and a leading global investment manager — JLL arranged a three-year, interest-only loan provided by MetLife Investment Management. The financing will support leasing initiatives at the campus and repay the existing loan that the JLL team previously arranged in 2018.
Intersect is a four-building, mid-rise Class A office campus totaling 452,060 square feet. Recent comprehensive renovations to both interior and exterior spaces repositioned the property as a contemporary, creative office destination. Those improvements helped raise occupancy from 13 percent to 78 percent at closing, with roughly 45 percent of tenants holding investment-grade credit.
The 15-acre site sits in the heart of the Irvine Business Complex in Orange County, just two blocks north of Interstate 405 at the prominent intersection of Main Street and Von Karman Avenue.
Intersect’s amenities are designed to promote work-life balance and community engagement. On-site offerings include a shipping-container beer garden and coffee shop, a game pavilion, fire pits, a chicken coop, a bird aviary, and a sports court. The campus also features a mix of indoor and outdoor workspaces; a new fitness center equipped with Peloton bikes, classes, high-end locker rooms, and a spin studio; an outdoor yoga lawn; private tenant terraces; and a 40-plus-seat stadium-style conference center.
“Intersect’s vision of creating a next-generation office environment that promotes a balance of work and wellness is critical in today’s market,” said Tom Lawless, Director of Hines’ Orange County office. “We appreciate our partnership with JLL and their execution throughout this process.”
The JLL Capital Markets debt placement team representing the borrower was led by Kevin MacKenzie, John Chun and Nick Lench.
“Sourcing a new lender, navigating underwriting and closing during the COVID-19 pandemic presented challenges, but teamwork and strong relationships produced a favorable outcome,” MacKenzie said. “Hines has created a best-in-class asset with Intersect, and we are pleased to have supported this next step in the property’s growth.”
Intersect benefits from proximity to retail, dining and entertainment destinations, including the Irvine Concourse directly across the street, Park Place, South Coast Plaza, Fashion Island and The District at Tustin Legacy.
The campus comprises Buildings A, B, C and D, located at 17875 and 17877 Von Karman Avenue and 17872 and 17838 Gillette Avenue in Orange County’s Airport-Area submarket.
JLL Capital Markets employs more than 3,700 capital markets specialists globally, with offices in nearly 50 countries.
July 10, 2020 Realty News Report. Copyright 2020.
Hines Refinances Office Campus
