PRC Structures $67 Million Data Center Value-Add Capital for Element Critical

Bethesda, MD, August 26, 2019

Phillips Realty Capital announced that a $67,000,000 transaction on behalf of Element Critical and its sponsors, Safanad and Industry Capital, has closed and funded. A team led by Bryan Leigh at EagleBank provided the funds to refinance and improve the 199,097 SF Tier III data center and office building located in Vienna, VA. Phillips Realty Capital’s William Lawson, Adam Bieber, and Harmon Handorf structured the debt financing.

Located at 7990 Quantum Drive, Element Critical’s Northern Virginia facility was built in 1978 and acquired by Safanad Industry Capital Internet Infrastructure, L.P. in 2016 from The Meridian Group. At completion, the Property will feature nearly 130,000 square feet of raised floor, including an 8 MW expansion of critical power in a N+1 redundancy configuration. This transaction will help fund the expansion plans that began shortly after the 2016 acquisition. The Property is predominately leased by publicly traded, investment grade tenants.

“On behalf of Element Critical and our sponsors, we were pleased with the market’s reaction to our transformation and enhancement of Quantum Drive,” said Ken Parent, CEO of Element Critical. “We were impressed by both Phillips Realty Capital’s financing team’s ability to tell our story and structure accretive capital and EagleBank’s well-tailored loan that will enable us to reach our goals with this asset.”

Lawson explained, “The capital markets for data center financing are rapidly evolving with more traditional and conventional lenders starting to invest in the space. Element Critical and its sponsors offer a powerful blend of capital expertise and operational excellence within the industry. EagleBank quickly demonstrated their deep knowledge and understanding of the market and provided our sponsor with a terrific structure for the next phase in this asset’s life-cycle.”

“Northern Virginia is the largest and most dynamic data center market in the world. Structuring debt in this critically important market for sponsors with expertise and passion is incredibly rewarding,” said Bryan Leigh, SVP Commercial Real Estate at EagleBank.  “We are very optimistic about the market and this asset in particular, and we’re committed to deploying more capital into this space.”

About Element Critical

Element Critical manages and operates data centers in Silicon Valley, Northern Virginia and now Chicago. The company’s Tier III hybrid IT ready facilities are carrier-neutral, network-rich, concurrently maintainable and available in a variety of deployment sizes and densities. Element Critical cares as much about the people they serve as the servers they house. Element Critical offers a data center experience that brings solutions engineering and customer service out of the shadows and into the spotlight. For more information, visit elementcritical.com.

About Safanad

Safanad is a global principal investment firm founded in 2009 with its main presence in New York and offices in London and Dubai. The firm creates sustainable value by pursuing opportunities underpinned by long-term social and economic insights and clear public sector policies and plans. As a principal investor, Safanad utilizes its capital, expertise and exceptional management partners to preserve and grow wealth for the firm and its global private and institutional clients. To date, Safanad has successfully executed ~$10 billion of transaction value in the U.S. and Europe across sectors including healthcare, education, student housing, suburban offices, automotive supply chain, and data centers. For more information, visit safanad.com.

About Industry Capital

Industry Capital is a private equity firm investing in real assets globally. The firm was founded in 2003 and based in San Francisco. Since inception, the firm has grown through investments in industrial real estate, real assets and a wealth management business. Industry Capital has a track record of success in operationally intensive real estate and has relationships with major pension funds, High-Net-Worth and private equity firms. Industry Capital is led by three partners with significant investment experience and a seasoned team of over 20 people.

About Eagle Bancorp, Inc & EagleBank

Eagle Bancorp, Inc. is the holding company for EagleBank, which commenced operations in 1998. EagleBank is headquartered in Bethesda, Maryland, and conducts full service commercial banking through 20 offices, located in Suburban, Maryland, Washington, D.C. and Northern Virginia. EagleBank focuses on building relationships with businesses, professionals and individuals in its marketplace. For more information, visit eaglebankcorp.com.

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Phillips Realty Capital Welcomes Malcolm Shaw

Bethesda, MD, July 2, 2019 –

Phillips Realty Capital announced that it has hired Malcolm Shaw as a managing director in its Bethesda, Maryland headquarters. He will be part of the production team, structuring debt and equity financing for the privately-owned mortgage banking firm’s commercial real estate clients.

Prior to joining PRC, Shaw served as a director at Ladder Capital Corp where he was responsible for the origination of both balance sheet and fixed rate securitized loans.

Mr. Shaw started June 3, 2019 and reports to David C. Foulk, principal.

“We’re thrilled to have attracted Malcolm away from Manhattan to join our team in the Washington Metropolitan Area,” Foulk said. “As we continue to embark on our growth strategy, Malcolm brings great experience to our team. He’s been immersed in the capital markets and brings fresh perspective from the investor side of the industry. He also exemplifies the work ethic and personal commitment that continue to be hallmarks of Phillips Realty Capital’s reputation.”

Talking about joining the firm, Shaw said, “This is a really exciting time in the history of Phillips. I am at a point in my career where I know I can add real value as we pursue growth opportunities in different markets. I see how clients benefit from working with a firm that still operates like a family-run business, and I am proud to be a part of the next generation of Phillips Realty Capital.”

PRC Structured in Excess of $700M in Q12019, Firm’s Best Quarter Ever

Bethesda, MD, May 8, 2019 –

Phillips Realty Capital announced that 1Q2019 was the best quarter in the mortgage banking firm’s 85-year history. Backed by best-in-class underwriting professionals, the production team structured more than $700 million of capital across property types and markets. The firm secured financing for retail, multifamily, office, cold storage industrial, hotel, and single-family rental properties in seven states across the country.

“Our first quarter has been outstanding, and we are confident that this momentum will carry into the balance of 2019,” said Joseph C. Tilley, Phillips Realty Capital Chief Operating Officer. “Capital is abundant, and our deep relationships with all types of capital providers allow us to find the most effective sources for our clients. On the other hand, product is scarce. Our history working with experienced developers and property owners enables us to offer attractive investment opportunities for capital providers.”

Speaking about changes in the market, Tilley explained, “Transactions have grown more complex. Our expert underwriting team has the ability to structure capital configurations to meet the objectives of everyone involved. The alignment of our relationships and capabilities has resulted in a robust pipeline. We are excited about the coming months.”

ABOUT PHILLIPS REALTY CAPITAL
Phillips Realty Capital is a leader in Washington, D.C. commercial real estate finance, structuring in excess of $1.2 billion in debt and equity transactions a year and servicing a $2.5 billion loan portfolio on behalf of 25 institutional investors. Established in 1933 and still privately owned, Phillips has a proven track record of collaborating with premier property owners, lenders, and investors to structure the most competitive transactions available in the market. With offices in Bethesda, Richmond, Charlottesville, and Alexandria, dedicated teams of experts deliver reliable financial analysis, precise valuations, and deep knowledge of capital markets to structure capital stacks that leverage debt and equity financing to maximize the value of client assets.

PRC Works with Brennan Investment Group on Development of Headquarters and Cold Storage Distribution Facility

Bethesda, MD, March 8, 2019

Phillips Realty Capital is proud to have worked with Brennan Investment Group to secure development financing for a new headquarters and cold storage distribution facility for Poultry Products Northeast in Londonderry, New Hampshire. Financing was arranged by John Sieber and William Lawson and provided by Camden National Bank, a Full-Service Community Bank headquartered in Camden, Maine. Brennan Investment Group recently issued a press release which can be read in its entirety on their website or below.

Brennan Investment Group, LLC, a private real estate investment firm that acquires, develops and operates industrial properties on a national basis, has announced plans to build and leaseback a new, state-of-the-art headquarters and freezer/cooler distribution facility for Poultry Products Northeast (“PPNE”) in Londonderry, New Hampshire. The site is located less than an hour from Boston with immediate access to I-93 and minutes away from the Manchester airport. PPNE, founded in 1959, is the largest independent food distribution company specializing in center-of-plate meat products in New England.

This build-to-suit project will comprise 105,000 square feet on nearly 26 acres and will significantly improve the company’s operating efficiency. The building is also designed for future expansion, which will allow PPNE to grow substantially over the longer term. Groundbreaking is scheduled during the first quarter of 2019. “We appreciate the opportunity to accommodate PPNE’s growth by delivering a first-class facility,” said Chris Massey, Managing Principal at Brennan Investment Group. “Our ability to find solutions that allow companies to grow supports our investment objective of producing stable, long-term cash flow for our investors.”

“The cold storage market has expanded considerably in recent years due to increasing demands for both fresh food products and e-commerce growth,” said Scott McKibben, Chief Investment Officer at Brennan Investment Group. “We will see a significant amount of new development as the freezer/cooler sector simultaneously modernizes and meets new customer requirements.”

Brennan’s development activities have increased significantly over the last several years with active build-to-suit and speculative projects underway in Chicago’s O’Hare market, Atlanta, Central Florida, Austin, Houston, Salt Lake City, and Denver. Active in major in-fill markets across the United States, Brennan sees long-term, stable demand from technology-enabled uses including e-commerce, robotics, automation, and data centers.

About Brennan Investment Group

Brennan Investment Group, a Chicago-based private real estate investment firm, acquires, develops, and operates industrial properties in select major metropolitan markets throughout the United States. Since 2010, Brennan Investment Group has acquired over $3 billion in industrial real estate. The company’s current portfolio spans 28 states and encompasses nearly 40 million square feet.

Brennan Investment Group co-invests with private and institutional capital to achieve outstanding risk-adjusted returns. The firm’s management team is among the most accomplished in its industry, having invested in over 4,000 properties covering more than 60 cities throughout the United States, Canada and Europe.

For more information on Brennan Investment Group, go to brennanllc.com.

PRC Structures $63 Million for Ohana Waikiki Malia Hotel in Honolulu

Bethesda, MD, February 6, 2019

Phillips Realty Capital announced that a $63,000,000 transaction on behalf of Lucky Hotels USA has closed and funded. Benefit Street Partners provided fixed-rate permanent financing secured by the 327-room OHANA Waikiki Malia Hotel located in Honolulu, Hawaii. The financing was structured by John R. Sieber, Jr., CMB, a Principal at Phillips Realty Capital. Aaron Derby, Managing Director, Originations at Benefit Street Partners, represented the lender.

Managed by Outrigger Hotels and Resorts, the property is located in the Waikiki Resort District just three blocks from the beach at 2211 Kuhio Avenue. The Hotel consists of two towers built in 1960 and 1980 and underwent a $6.2M renovation in 2010 to update the rooms, lobby, and common areas. Amenities are geared towards family and group travelers with connecting rooms and one-bedroom units with kitchenettes. Visitors are just steps from Kalakaua Avenue’s “Luxury Row,” a renowned shopping and international travel destination.

“We sought out a lender with deep understanding of Hawaii’s hospitality market,” Sieber said. “Benefit Street’s experience in the market helped them to see the value of a long-term owner with near-term plans for capital upgrades that position the property well for the future.”

“Working with the Phillips team gave us high confidence in the underwriting. Their attention to detail facilitated a timely and seamless closing,” said Derby.

About Phillips Realty Capital

Phillips Realty Capital is a leader in Washington, D.C. commercial real estate finance, structuring approximately $1.2 billion in debt and equity transactions a year and servicing a $2.5 billion loan portfolio on behalf of 25 institutional investors. Established in 1933 and still privately owned, Phillips has a proven track record of collaborating with premier property owners, lenders, and investors to structure the most competitive transactions available in the market. With offices in Bethesda, Richmond, Charlottesville, and Alexandria, dedicated teams of experts deliver reliable financial analysis, precise valuations, and deep knowledge of capital markets to structure capital stacks that leverage debt and equity financing to maximize the value of client assets. Read more at www.phillipsrealtycapital.com.

About Lucky Hotels USA

Lucky Hotels U.S.A. Company, LTD (“Lucky Hotels”) is a single-purpose entity that owns the OHANA Waikiki Malia Hotel. Lucky Hotels is owned by Fukuyoshi Kawazoe and his son Michael. The family manages Lucky Hotels and the retail outlets Rivals Lounge and Slice of Waikiki located on property.

About Benefit Street Partners

Benefit Street Partners Realty Trust, Inc. (“BSPRT”) is a publicly-registered, non-traded real estate investment trust (“REIT”) that originates, acquires and manages a diversified portfolio of commercial real estate debt secured by properties located in the United States. BSPRT is externally managed by Benefit Street Partners (“BSP”), a leading credit-focused alternative asset management firm with approximately $26 billion of assets under management. BSPRT invests throughout the capital structure with a focus on generating attractive risk-adjusted returns. Read more at bsprealtytrust.com.

PRC Participates in Salvation Army’s Angel Tree Program

Bethesda, MD, December 6, 2018

As the end of 2018 approaches, Phillips Realty Capital is delighted and humbled by the opportunity to give back to the Washington, DC community our firm has called home for more than 85 years.

This holiday season, PRC employees embraced the holiday spirit by sponsoring needy families in partnership with the National Capital Area Salvation Army. The Salvation Army’s Angel Tree Program has existed for more than 35 years and offers supporters the opportunity to provide new clothing and toys for children of struggling families around the holidays. In partnership with EB5 Capital, PRC and the firm’s employees sponsored more than four dozen children and provided more than 150 toys and 200 items of clothing.

“Thank you to all of our employees who joined Phillips Realty Capital and EB5 Capital in the Salvation Army’s 2018 Angel Tree Project,” said PRC Chief Operating Officer, Joe Tilley. “Through your generosity, we sponsored 52 ‘Angels’ who otherwise would have gone without Christmas gifts because their families are struggling financially and cannot afford the expense. What a treasured experience.”

PRC Structures $10.75 Million for Retail Center in Suburban Cleveland

Bethesda, MD, October 22, 2018

Phillips Realty Capital announced that a $10,750,000 transaction on behalf of Madison Marquette has closed and funded. Bridge Investment Group provided financing for Beachcliff Market Square, a 97,160 square-foot open-air mixed-use community center just outside Cleveland, Ohio. Mark Remington, Principal at Phillips Realty Capital, arranged the financing. Madison Marquette and Mr. Remington have worked on multiple capital assignments together over many years.

Built in 2006, Beachcliff Market Square is located in Rocky River, 10-miles from downtown Cleveland. The open-air lifestyle center offers approximately 10,000 square feet of office and 87,000 square feet of retail space occupied at 80 percent of capacity by a blend of local and national tenants. The Property is comprised of one- and two-story community center buildings and a 127-space underground parking garage.

“Retail financing, especially without an anchor, is challenging. Lenders are looking not just at the strength of the sponsor, but also the health of the tenants,” Remington said. “Madison Marquette’s reputation and long-term ownership of the property coupled with recent lease renewals were key factors in securing financing.”

“Phillips was able to structure and secure financing that allowed us to get cash out of the asset and provide sufficient good news money to lease up the vacant space in our project,” said Omar Doughan of Madison Marquette.

About Phillips Realty Capital

Phillips Realty Capital is a leader in Washington, D.C. commercial real estate finance, structuring approximately $1.2 billion in debt and equity transactions a year and servicing a $2.5 billion loan portfolio on behalf of 25 institutional investors. Established in 1933 and still privately owned, Phillips has a proven track record of collaborating with premier property owners, lenders, and investors to structure the most competitive transactions available in the market. With offices in Bethesda, Richmond, Charlottesville, and Alexandria, dedicated teams of experts deliver reliable financial analysis, precise valuations, and deep knowledge of capital markets to structure capital stacks that leverage debt and equity financing to maximize the value of client assets. Read more at www.phillipsrealtycapital.com.

About Madison Marquette

Madison Marquette merged operations with PMRG in June 2018 to create a new leader in commercial real estate. The firm offers PMRG’s leasing, property management, investment management and development services, combined with Madison Marquette’s specialized development, investment and marketing expertise. Madison Marquette’s strength in retail and mixed-use assets joined PMRG’s office, medical, industrial and multi-family capabilities to provide national leadership across asset classes. PMRG’s dominance in the southern US combined with Madison Marquette’s presence in primary gateway markets on both coasts to serve the top institutional owners and investors in the industry. The company provides leasing and management services to a diverse portfolio of 330 assets in 24 states and manages an investment portfolio valued at over $6 billion. The combined company is headquartered in Washington, DC with a major presence in Houston, TX. With 600 professionals in 13 regional markets, the merged firm is a member of the Capital Guidance group of companies.

About Bridge Investment Group

Bridge Investment Group is a privately held real estate investment management firm with $10 billion in assets under management. Bridge combines its 1,000-person, nationwide operating platform with specialized teams of investment professionals focused on select US real estate verticals, which Bridge believes offer above-market opportunity: Multifamily, Office, Seniors Housing, Affordable Housing and Debt Strategies. Read more at www.bridgeig.com.

Phillips Realty Capital Welcomes Blake Kline

Bethesda, MD, September 19, 2018 –

Phillips Realty Capital is pleased to welcome Blake Kline to the underwriting team. Prior to joining Phillips, Blake worked as an analyst at Red Stone Equity Partners, a real estate fund manager based in Charlotte, North Carolina.

“Over the past few years, Blake has developed a fairly diverse skill set in commercial real estate,” said Phillips COO, Joseph Tilley. “ We expect her to make an immediate impact supporting our originations team and also with asset surveillance on properties in our $2.5B servicing portfolio. We are delighted to bring her on board.”

Blake graduated from The University of Alabama in 2016 with dual Bachelor of Science degrees in Economics and Business Management.

PRC Secures $62.24 Million Capital Stack for Legacy’s Acquisition of a Data Center Outside of Atlanta

Bethesda, MD, August 6, 2018

Phillips Realty Capital (PRC) announced that two transactions totaling $62,240,000 have closed and funded on behalf of Legacy Investing, LLC for the acquisition and joint venture operation of a fully-leased Tier IV data center located in Alpharetta, GA. Phillips Realty Capital Managing Director Adam Bieber and Director William Lawson structured the debt and equity for the partnership.

Guggenheim Partners provided a balance sheet loan on behalf of one of their separate accounts in the amount of $41,900,000 of permanent financing for the acquisition.

“Guggenheim demonstrated an early interest in the opportunity when first presented. We were impressed by their creativity and ability to properly tailor the loan to our clients’ strategy,” said Lawson.

A private equity investment firm provided $20,340,000 to form a joint venture with Legacy to acquire and operate the data center.

The 165,000 SF mission-critical data center sits on a 14.46-acre site located at 1650 Union Hill and is comprised on 50,440 SF raised data space and 58,814 SF office space, with the remaining space occupied by data center infrastructure. The data center offers 4 megawatts (“MW”) of critical power in a 2N+ 1 configuration with the ability to expand its power density. The facility was a purpose-built data center in 1999 for its primary occupant, an institutional credit tenant.

About Phillips Realty Capital

Phillips Realty Capital is a leader in Washington, D.C. commercial real estate finance, structuring approximately $1.2 billion in debt and equity transactions a year and servicing a $2.5 billion loan portfolio on behalf of 25 institutional investors. Established in 1933 and still privately owned, Phillips has a proven track record of collaborating with premier property owners, lenders, and investors to structure the most competitive transactions available in the market. With offices in Bethesda, Richmond, Charlottesville, and Alexandria, dedicated teams of experts deliver reliable financial analysis, precise valuations, and deep knowledge of capital markets to structure capital stacks that leverage debt and equity financing to maximize the value of client assets. Read more at www.phillipsrealtycapital.com.

About Legacy Investing, LLC

Legacy Investing focuses on mission-critical real estate investments that provide long-term, stable cash yields. Legacy is led by a seasoned team of corporate technology executives who shifted into real estate investing, leveraging personal and industry contacts and expertise to source and underwrite predominantly off-market deals. Legacy’s principals have leveraged this platform over the past decade to complete more than $1.5 billion in transactions across industrial assets, data centers, offices and multi-family properties. Read more about Legacy Investing at https://www.legacyinvesting.com.

About Guggenheim Partners

Guggenheim Partners is a global investment and advisory firm with more than $305 billion in assets under management. Across the company’s three primary businesses of investment management, investment banking, and insurance services, Guggenheim has a track record of delivering results through innovative solutions. With over 2,400 professionals based in more than 25 offices around the world, the company’s commitment is to advance the strategic interests of clients and to deliver long-term results with excellence and integrity. Learn more about Guggenheim’s expertise and values by visiting GuggenheimPartners.com and following them on Twitter at twitter.com/guggenheimptnrs.

PRC Secures $22.5 Million Financing for Rappaport’s WesTech Corner Retail Center

Bethesda, MD, June 7, 2018

Phillips Realty Capital announced that a $22,500,000 transaction on behalf of repeat client Rappaport has closed and funded. United Bank provided permanent financing for WesTech Corner, a 41,262-square-foot community shopping center located at the intersection of Route 29 and Prosperity Drive in Silver Spring, Maryland. Mark Remington, Principal at Phillips Realty Capital, arranged the financing.

WesTech Corner is 100% leased to a mix of national destination and convenience retailers including Five Guys, Chick-fil-A, Qdoba Mexican Grill, TGI Fridays, Panera Bread, IHOP, and Capital One Bank. The center is located in a densely populated area with more than 300,000 people with average household incomes of over $102,000 living within a five-mile radius. Adjacent to the Hilton Garden Inn Silver Spring, its frontage on Route 29 gives the center visibility to more than 65,000 vehicles per day. Since acquiring the property in October 2014, Rappaport has invested $500,000 in improvements.

“This deal bucks suburban retail trends,” Remington said. “Rappaport is a best-in-class sponsor, and this is a seasoned center with stable, long-term leases. Closing this deal was a matter of matching a premier sponsor with a premier lender.”

“United Bank knows this region and was the ideal lending partner for this asset,” said Gary D. Rappaport, Chief Executive Officer at Rappaport. “Phillips was well positioned to showcase not just the center’s value but the value we add over the long term to the property. Their work on the front end ensured a smooth closing.”

About Phillips Realty Capital

Phillips Realty Capital is a leader in Washington, D.C. commercial real estate finance, structuring approximately $1.2 billion in debt and equity transactions a year and servicing a $2.5 billion loan portfolio on behalf of 25 institutional investors. Established in 1933 and still privately owned, Phillips has a proven track record of collaborating with premier property owners, lenders, and investors to structure the most competitive transactions available in the market. With offices in Bethesda, Richmond, Charlottesville, and Alexandria, dedicated teams of experts deliver reliable financial analysis, precise valuations, and deep knowledge of capital markets to structure capital stacks that leverage debt and equity financing to maximize the value of client assets. Read more at www.phillipsrealtycapital.com.

About Rappaport

Rappaport provides the Washington, D.C. area with professional real estate services centered exclusively on the retail sector. Founded in 1984 by Gary D. Rappaport, Rappaport owns, manages and develops shopping centers. The company also provides leasing, tenant representation, property management, marketing, development, construction management, receivership and consulting services for retail space in shopping centers and mixed-use properties throughout Washington, D.C., Maryland and Virginia. Read more at www.rappaportco.com.

About United Bank

United Bank is the largest community bank headquartered in Greater Washington. It has assets of approximately $18.6 billion and 142 full-service banking locations throughout Washington, D.C., Virginia, Maryland, West Virginia, Ohio and Pennsylvania. For more information, visit BankWithUnited.com.