HFF Secures $162 Million Financing for Conversion of Hall Street Complex in Brooklyn into Premier Creative Loft Office Property

Holliday Fenoglio Fowler, L.P. (HFF) recently secured $162 million in first mortgage financing for the Hall Street Complex, a 10-building, 665,000-square-foot creative mixed-use complex across from the Brooklyn Navy Yard in Brooklyn, New York.

HFF worked on behalf of the borrower, a partnership between Westbrook Partners and RXR Realty, to arrange the floating-rate loan through Starwood Property Trust, Inc. (NYSE: STWD). Loan proceeds were used to acquire the property and will fund the repositioning of the asset into a premier creative loft office property capitalizing on the growing demand for office in the burgeoning Navy Yard submarket.

The Hall Street Complex spans an entire city block, bordered by Flushing and Park Avenues and Ryerson and Hall Streets, in the desirable Clinton Hill neighborhood of Brooklyn. The property is directly across the street from the Brooklyn Navy Yard, two blocks from the Pratt Institute of Technology, and adjacent to the Brooklyn Queens Expressway, which provides access to Brooklyn’s Williamsburg neighborhood within five minutes and Manhattan’s Union Square within 35 minutes. The property features an exposed brick and mortar industrial design, 14’ ceiling heights throughout, expansive window lines, large and flexible 4,500 – 28,000-square-foot floorplates and Manhattan skyline views to the north. Additionally, The Hall Street Complex offers the unique feature of full floor or full building presences in a variety of sizes not typically available to small and mid-size tenants. Upon completion of the conversion, the property will offer door-to-door shuttle service to the area subways, an amenity few other properties in the area offer.

The HFF debt placement team representing the borrower was led by Michael Tepedino, Steven Klein and Christopher Peck.

“The Hall Street Complex offers a fantastic canvas for a best-in-class creative office environment. RXR and Westbrook are uniquely equipped to reimagine the asset to accommodate the growing demand of Brooklyn-based tenants looking to grow within the market, as well as Manhattan-based companies eager to plant their flag where many of their employees live, work and play,” Peck said.

“The wide range of floor plates, high ceilings and future amenities will both attract and retain tenants, a dynamic that is perfectly suited for the burgeoning Brooklyn office market,” Klein added.

About Westbrook Partners

Westbrook Partners, founded in April 1994, is a privately-owned, fully integrated real estate investment management company with offices in New York, Boston, Washington, D.C., Palm Beach, San Francisco, Los Angeles, London, Munich, Paris and Tokyo.

About RXR Realty

RXR Realty LLC (“RXR”) is a vertically integrated private real estate company with expertise in investment management, property management, development, design, construction, leasing and financing. RXR employs approximately 380 people with expertise in a wide array of value creation activities including repositionings, uncovering value in complex transactions, various forms of debt investments and structured finance arrangements. RXR is one of the largest owners, managers, and developers in the New York metropolitan area. RXR’s operating platform manages 87 commercial real estate properties and investments comprising 23.1 million square feet located in the New York metropolitan area with an aggregate gross asset value of approximately $12.7 billion. In addition, RXR has a residential development pipeline of approximately 3,000 units located in the New York metropolitan area. For more information about RXR, visit www.rxrrealty.com.

About Starwood Property Trust

Starwood Property Trust (NYSE: STWD), an affiliate of global private investment firm Starwood Capital Group, is the largest commercial mortgage real estate investment trust in the United States. The Company’s core business focuses on originating, acquiring, financing and managing commercial mortgage loans and other commercial real estate debt and equity investments. Through its subsidiaries LNR Property, LLC and Hatfield Philips International, Starwood Property Trust also operates as the largest commercial mortgage special servicer in the United States and one of the largest primary and special servicers in Europe. With total capital deployed since inception of approximately $26 billion, Starwood Property Trust continues to solidify its position as one of the premier real estate finance companies in the country.

About HFF

HFF and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 22 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF.

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