Hanwha, Hana extend mezzanine loans on US properties

  • 2019-04-06

Hanwha Investment & Securities Co. Ltd. has provided a 140 billion won ($123 million) mezzanine loan on an office complex in Silicon Valley leased to Facebook and Amazon, after Hana Financial Investment Co. Ltd. jointly extended $180 million in mezzanine financing for a New York hotel project.

The 140-billion-won mezzanine loan is part of a refinancing package secured on the second Moffett Towers project in Sunnyvale, California, according to sources with knowledge of the matter on April 4.

Last October, Deutsche Bank reportedly led a $500 million commercial mortgage-backed securities (CMBS) refinancing on Moffett Towers II. It was not immediately known whether the mezzanine loan was part of the CMBS package.

The Moffett Tower II office campus consists of five eight-story towers which are expected to have a floor space of 160,000 square meters, when complete later this year.

Jay Paul Co., a San Francisco-based developer, began the office development, which reportedly cost $685 million, in 2016 and leased up the five buildings to Facebook and Amazon last year.

Hanwha Investment extended the loan via affiliate Hanwha Asset Management Co. Ltd. It is a brokerage arm of South Korea’s Hanwha Group whose businesses span chemicals, energy, leisure and financial services.

The complex is located in the Moffett Park district, a hub to tech giants such as Google, Hewlett Packard and Amazon.

Google occupies nearly all of the first Moffett Towers project.

Separately, Hana Financial Investment has recently participated in a $180 million financing package for the Margaritaville hotel development in Manhattan’s Time Square.

Hana, US investment firm Angelo Gordon and Related Fund Management, a real estate investment company, provided the mezzanine loan to Soho Properties which secured a total of $270 million in senior and mezzanine financing on the hotel project in February.

The coupon rates on both mezzanine notes were not disclosed.

By Daehun Kim

daepun@hankyung.com

<Edited by Yeonhee Kim>

(Photo: Getty Images Bank)