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.

PRC in the News: MBA Dealmaker 6/6/18

Bethesda, MD, June 6, 2018

Phillips Realty Capital is in today’s issue of MBA Dealmaker which can be read in its entirety on their website or below. The article covers the recent closings of Crowne Plaza Dulles and Bexley Lake Forest.

Phillips Realty Capital, Bethesda, Md., secured $70 million in commercial mortgage-backed securities and life company financing for hotel and multifamily assets in Virginia and Texas.

In Herndon, Va., Phillips Realty Capital Principal Mark Remington arranged $30 million to refinance the recently renovated 324-room Crowne Plaza Dulles Airport Hotel. Bank of America Merrill Lynch’s commercial mortgage-backed securities team provided the permanent financing.

Located half an hour from Washington, D.C. and two miles from Dulles International Airport, the Crowne Plaza Dulles is part of the InterContinental Hotels Group family.

Rocks Engineering developed the hotel in 1986 as a Days Inn. The company has since repositioned the property as a commercial transit and group-oriented hotel for business travelers. It received a $12 million renovation and repositioning in 2015 and 2016 and now includes 10,000 square feet of flexible meeting space and an on-site restaurant.

Reliable corporate accounts collectively book more than 6,000 room nights per year, Remington said.

“While capital markets have tightened for the hotel sector, Rocks made strategic investments and developed a solid business plan that is driving consistent occupancy and rate, so we were able to compete this deal to a wide variety of lenders,” Remington said.

Phillips also secured $40 million of long-term financing from New York Life Insurance Co. for Weinstein Properties to purchase a 334-unit Class A apartment community 30 minutes north of Dallas. Managing Director Charles DuBose structured the long-term fixed-rate loan.

Located just outside downtown McKinney, Texas, Century Lake Forest will be rebranded as Bexley Lake Forest. The acquisition is the third community Weinstein has acquired in the Dallas/Fort Worth market and the firm’s ninth Texas asset.

PRC Secures $40 Million Financing for Weinstein Properties’ Acquisition of Bexley Lake Forest

Bethesda, MD, June 4, 2018

Phillips Realty Capital announced that Weinstein Properties secured $40,000,000 of long-term financing from New York Life Insurance Company to purchase a 334-unit Class A apartment complex 30 minutes north of Dallas, Texas. Phillips Realty Capital Managing Director Charles DuBose structured the long-term, fixed-rate loan.

Located just outside downtown McKinney, Texas at 5201 Collin McKinney Parkway, Century Lake Forest will be rebranded as Bexley Lake Forest. The amenity-rich complex is the third community Weinstein has acquired in the Dallas/Fort Worth market and ninth in the state of Texas.

“We have worked with Phillips Realty Capital to finance properties in our home state of Virginia as well as our expansion into both the Austin and Dallas markets,” said John Lancaster, Co-President and Chief Financial Officer of Weinstein Properties. “Phillips has successfully represented our family-owned and operated business to the capital markets. In this case, they once again successfully managed the financing process with the lender to ensure a smooth, on-time closing.”

“Weinstein has a stellar reputation, and this property is well-suited for their portfolio,” said DuBose. “New York Life Real Estate Investor’s Dallas office was familiar with the property and Weinstein’s business model, thus creating the recipe for another successful transaction. We were thrilled to be part of the deal team.”

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 Weinstein Properties

Weinstein Properties was founded in 1962 by Marcus M. Weinstein. Prior to founding Weinstein Properties, Mr. Weinstein developed thousands of single-family homes in the central Virginia area. Since its inception, Weinstein Properties has proudly provided superior customer service and a caring attitude towards our residents and employees. Weinstein Properties now owns and manages over 18,000 apartment homes and is still locally owned and operated by the Weinstein family. Read more at www.weinsteinproperties.com. Information about the Bexley Lake Forest development, previously known as Century Lake Forest, can be found at www.bexleylakeforest.com.

PRC Arranges $30 Million Financing for Rocks Engineering’s Crowne Plaza Dulles Airport Hotel

Bethesda, MD, May 9, 2018

Phillips Realty Capital announced that a $30,000,000 transaction on behalf of Rocks Engineering Company has closed and funded. Bank of America Merrill Lynch’s CMBS team provided permanent financing for the recently renovated 324-room Crowne Plaza Dulles Airport Hotel in Herndon, Virginia. Mark Remington, Principal at Phillips Realty Capital, arranged the financing.

Located half an hour outside of Washington, D.C. and two miles from Dulles International Airport (“IAD”), The Crowne Plaza Dulles is part of the InterContinental Hotels Group (“IHG”) brand family. The hotel underwent an extensive $12 million renovation and repositioning in 2015/2016 and now includes 10,000 square feet of flexible meeting space, a business center, a 24-hour fitness center, and an on-site restaurant. Rocks Engineering developed the hotel in 1986 as a Days Inn. The company has since repositioned the property as a commercial transit and group-oriented hotel designed to meet the needs of the region’s business community. Reliable corporate accounts collectively book more than 6,000 room nights per year.

“Mark Remington and the team at Phillips dug deep into the details with us to really understand the value we’ve added to this property,” said Michael Rocks, Managing Director of Rocks Engineering Co. “We were absolutely confident in their ability to represent our asset and secure financing at optimal terms.”

“While capital markets have tightened for the hotel sector, Rocks made strategic investments and developed a solid business plan that is driving consistent occupancy and rate, so we were able to compete this deal to a wide variety of lenders,” Remington said.

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 Rocks Engineering Company

Rocks Engineering Company, along with its management affiliate—Allen & Rocks, Inc.—has been in the real estate development business in the Washington, Baltimore and Richmond corridor for over 70 years. The Company has evolved over the years from a builder of single-family homes to a developer of multi-family residential, high-rise apartments, shopping centers, hotels, restaurant sites and other commercial properties.

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