Holliday Fenoglio Fowler (HFF) has secured $324m in construction financing and joint venture equity on behalf of Boylston Properties, The Wilder Companies and Jonathan Bush for the development of Arsenal Yards, a six-building, mixed-use redevelopment of the former Arsenal Mall in Watertown, Massachusetts, US.
The HFF team worked to source institutional investors advised by JP Morgan Asset Management as joint venture equity partners, which provided $102m of equity, and also secure a $222m construction loan from Wells Fargo Bank.
Arsenal Yards is located along the banks of the Charles river west of Boston in East End Watertown. Construction is underway and the first phase is scheduled to open in 2019.
Arsenal Yards will create an urban neighbourhood with more than one million ft² that will include 250,000ft² of destination shops and eateries, anchored by Roche Bros and The Majestic Cinema; and Yard Works (200,000ft² of new and existing office and lab space).
It will also include Blvd & Bond (425 contemporary residences); a 150-room Hampton by Hilton; The Fitness Collection and a revitalised Arsenal Park with expanded access to the Charles river.
Located adjacent to the project are corporate headquarters for AthenaHealth and Bright Horizons, as well as New Balance, Harvard Business School’s campus expansion, Harvard’s $1.0bn Science and Engineering Complex, which is set to open in 2020, and the LINX office/lab complex (fully leased) developed by Boylston Properties.
HFF senior managing directors Fred Wittmann and Coleman Benedict, senior director Brett Paulsrud and associate Henry Schaffer were part of the debt and equity placement teams.
Paulsrud said: “HFF was able to work closely with the development team to secure a capitalisation structure that met their objectives.
“This redevelopment will dramatically transform the landscape of Watertown, adding a significant amenity base to the area. It will be very exciting to watch this best-in-class partnership create a new destination for surrounding residents and businesses alike.”
Image: Arsenal Yards retail entrance. Photo: courtesy of Arsenal Yards.