New York Life Real Estate Investors originates construction financing for Hines’ new global headquarters in Houston, Texas.
New York, July 23, 2018—New York Life Real Estate Investors (“NYLREI”) announced today that it arranged construction financing for a new, 47 story, one million square foot office tower, which will be developed by Hines, the international real estate firm, in partnership with Ivanhoé Cambridge. The project will be located on the 800 block of Texas Avenue in Houston, Texas on the former site of the Houston Chronicle.
“Working with Hines and JLL on this financing demonstrates our ability to leverage our broad platform’s relationships to source attractive debt investment opportunities in superior projects with institutional quality borrowers,” said Timothy Monroe, New York Life Real Estate Investors senior director.
Hines is relocating its global headquarters to 155,000 square feet in the new building. In addition, Vinson & Elkins, the largest and one of the oldest law firms in Houston, has signed a lease for 212,000 square feet. The project was designed by architectural firm Pelli Clarke Pelli and will be built to Hines’ highest standards, including both LEED® Platinum and WELL Building certifications.
Echoing the words of Hines’ founder, “If you build a superior project in a great location, it will retain its value in the tough times, and be profitable in the good ones”, said John Mooz, Senior Managing Director for the Southwest Region. Mooz continued, “this project is intended to capture our best practices from around the world.”
JLL advised the owner on the construction financing. “This world class development will set a new standard for downtown Houston, and we are excited to have had the opportunity to work with Hines and New York Life Real Estate Investors in arranging the construction financing. The mutual commitment from all involved at the highest levels was definitely noteworthy and allowed for a timely closing within an extremely tight timeframe,” said Mike Melody, executive managing director and co-head of JLL Capital Markets.
Since formalizing the program in 2012, NYLREI has arranged over $3.5 billion of construction and bridge financing commitments. “This transaction highlights our capability to structure and underwrite large construction loans to meet institutional developers’ needs while offering attractive risk adjusted returns,” said John Lippmann, New York Life Real Estate Investors senior director.
About New York Life Real Estate Investors
New York Life Real Estate Investors is a division of NYL Investors LLC, a wholly-owned subsidiary of New York Life Insurance Company. Please visit New York Life Real Estate Investors’ website at http://www.newyorklife.com/realestateinvestors for more information.
New York Life Real Estate Investors is a full service, fully-integrated real estate enterprise with more than 100 professionals. The division has market-leading capabilities in origination, underwriting, and investment in real estate equity products and related debt, including real estate equity investments, commercial mortgage loans, commercial mortgage backed securities, and unsecured REIT bonds. With over $52.3 billion in assets under management as of November 30, 2017, New York Life Real Estate Investors is actively seeking to acquire additional properties throughout the U.S.
About New York Life
New York Life Insurance Company (www.newyorklife.com), a Fortune 100 company founded in 1845, is the largest mutual life insurance company in the United States* and one of the largest life insurers in the world. Headquartered in New York City, New York Life’s family of companies offers life insurance, retirement income, investments and long-term care insurance. New York Life has the highest possible financial strength ratings currently awarded to any life insurer from all four of the major credit rating agencies**.
About JLL Capital Markets
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients—whether a sale, financing, repositioning, advisory or recapitalization execution. In 2017 alone, the firm’s 2,000 Capital Markets specialists completed $170 billion in investment sale and debt and equity transactions globally.
*Based on revenue as reported by “Fortune 500 ranked within Industries, Insurance: Life, Health (Mutual),” Fortune magazine, 6/1/18. For methodology, please see http://fortune.com/fortune500/.
**Individual independent rating agency commentary as of 8/1/17: A.M. Best (A++), Fitch (AAA), Moody’s Investors Service (Aaa), Standard & Poor’s (AA+)
New York Life Insurance Company