HFF Closes $89.5 Million Sale of Pittsburgh's Cranberry Woods Office Park and Arranges Financing for Buyer

• Press Release
• Source: HFF
• On 6:23 pm EDT, Tuesday September 8, 2009

PITTSBURGH--(BUSINESS WIRE)--The Pittsburgh office of HFF (Holliday Fenoglio Fowler, L.P.) announced today that it has closed the sale of and arranged financing for Cranberry Woods Office Park, a four-building office complex in northern Pittsburgh, Pennsylvania.

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HFF executive managing directors Gerard Sansosti and John Pelusi and managing director Nick Matt led the investment sales team exclusively on behalf of the seller, Kennedy Associates Real Estate Counsel, on behalf of the Multi-Employer Property Trust. Other members of the marketing team included senior managing director Glenn Whitmore (HFF New York) and managing director Jaime Fink (HFF Chicago). An affiliate of McKnight Development Corporation, owned by the Pittsburgh-based Rudolph Family, purchased Cranberry Woods for $89.5 million.

In addition, HFF worked on behalf of the buyer to arrange the $48 million first mortgage through a co-lending relationship between First Commonwealth Bank and First Merit Bank. The loan was structured as a five-year, 6.35% fixed-rate financing. A mezzanine loan provided by the seller was also part of the transaction.

Completed between 1999 and 2007, Cranberry Woods Office Park totals 452,913 square feet within four, four-story buildings. All of the properties are fully leased and key tenants include Cellco (a subsidiary of Verizon), McKesson, Westinghouse (a subsidiary of Toshiba) and Network Appliance, Inc. The buildings are located at 500, 600, 700 and 800 Cranberry Woods at the confluence of Interstates 79 and 76 (Pennsylvania Turnpike) and Routes 19 and 228 in Cranberry Township approximately 20 miles north of Pittsburgh.

“Cranberry Woods is considered the premier Class A office complex in the Pittsburgh MSA therefore it’s no surprise that it was the largest office sale transaction in western Pennsylvania thus far in 2009,” said Sansosti.

Kennedy Associates Real Estate Counsel, LP, a full-service registered real estate investment advisor, brings over 30 years of entrepreneurial real estate investment expertise to a select number of public, corporate and Taft-Hartley retirement systems, as well as major university endowments. Kennedy has invested in and managed $13 billion in development, redevelopment, and existing properties.

The Rudolph family, together with their partner Chuck Perlow, owns McKnight Realty Partners, a leading real estate investment and development company based in Pittsburgh, Pennsylvania. McKnight, through its affiliates, owns several million square feet of prime property in the northeastern United States.

HFF (NYSE:HF - News) operates out of 17 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF offers clients a fully integrated national capital markets platform including debt placement, investment sales, structured finance, private equity, loan sales and commercial loan servicing. www.hfflp.com.

HFF
Executive Managing Director
Gerard T. Sansosti, 412-281-8714
gsansosti@hfflp.com
or
Managing Director
Nicholas P. Matt, 412-281-8714
nmatt@hfflp.com
or
Associate Director, Marketing
Kristen M. Murphy, 713-852-3500
krmurphy@hfflp.com