HFF Arranges $100M Credit Facility for McMorgan & Co.

September 2, 2011
By Barbra Murray, Contributing Editor

Holliday Fenoglio Fowler L.P. has come through for McMorgan & Co. LLC., orchestrating a $100 million credit facility for the real estate investment adviser.

HFF brought PNC Bank to the table to provide McMorgan with the financing, which came in the form of a four-year, floating-rate loan. The new financing supplants an existing unsecured facility for the McMorgan Institutional Real Estate Fund. Proceeds will be utilized to provide MIREF with operations flexibility as well as to finance new acquisitions. The fund has been consistently enhancing its portfolio this year, and HFF has provided its assistance in that endeavor. In the second quarter, HFF arranged a $134.8 million package of cross-collateralized loans for the purchase of a 2.8-million-square-foot, mixed-use portfolio spanning eight states.

McMorgan is among a handful of real estate companies that have recently benefited from HFF’s ability to secure sizeable financing deals in a lending market that can still be quite inhospitable. Last month, the firm came through for a group of institutional investors advised by J.P. Morgan Asset Management and Samuels & Associates with a $230 million in acquisition financing from New York Life Insurance Co. and New York State Teachers Retirement System for the purchase of the 950,000-square-foot Landmark Center mixed-use complex in Boston. Also last month, acting on behalf of RXR Realty, Broadway Partners and USAA Real Estate Co., HFF facilitated a $315 million refinancing deal for the 750,000-square-foot Manhattan office tower at 340 Madison through Cornerstone Real Estate Advisers.