AIG Lends $190M for Dallas Office Tower in Deal Brokered by HFF
AIG closed a $190 million debt deal with Atlanta-based Goddard Investment Group to refinance and upgrade the firm’s recently acquired Fountain Place office tower in Dallas, Commercial Observer has learned.
The financing, negotiated by HFF, is divided into two components—a $100 million, seven-year, fixed-rate loan and a $90 million, floating-rate loan, according to a spokeswoman for brokerage. The term of the second loan was not disclosed.
Senior Managing Director John Brownlee, Managing Director Steve Heldenfels and Director Jim Curtin led the HFF debt placement team representing the borrower.
Proceeds from the loans will be used to replace existing debt on the property and fund tenant improvements and leasing commissions as well as capital expenditures for the construction of a new parking garage and interior renovations.
Goddard purchased the 1.2-million-square-foot, 58-story office tower from J.P. Morgan Asset Management for close to $200 million in June 2014, according to previous reports. HFF was also involved in the sale of the property located at 1445 Ross Avenue in the Dallas Arts District.
The building, designed by architect I.M. Pei, features a water garden at its base designed by landscape architect Dan Kiley.
The property, which was completed in 1986, includes an adjacent 1.5-acre development site, which will house the above-grade parking garage.
Fountain Place is 86 percent leased. The office tower’s tenants include Wells Fargo, Hunton & Williams and the Dallas-based multinational healthcare services company Tenet Healthcare.
Representatives for Goddard and AIG did not return requests for comment.