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GlobeSt.com: Construction Loan of $142M Sealed for FLIGHT

by Carrie Rossenfeld

TUSTIN, CA—A partnership between Lincoln Property Co. and Alcion Ventures has gained financing for construction of the first phase of the 470,000-square-foot creative-office campus here called FLIGHT, which aims to be a one-of-a-kind working and dining experience. HFF worked on behalf of the development partnership to place the three-year construction loan with ACORE Capital and iStar Inc. for $141.6 million.

FLIGHT is the first office development within the 1,600-acre site of the former Marine Corps Air Station Tustin, and it aims to cement the Tustin Legacy master-planned development as a true “live/work/play” community. Designed with unique, hangar-inspired architecture, FLIGHT’s goal is to provide an inspiring, one-of-a-kind working and dining experience. Amenities will include a 12,000-square-foot food hall, which will feature an array of unique, chef-driven dining concepts, and a 7,000-square-foot conference center, which will serve an untapped need for collaborative space that can be utilized by tenants or third parties. Both were designed to serve as a draw to tenants to increasingly desire a broad base of walkable, convenient community amenities.

The HFF debt placement team representing the borrower was led by managing director Mark Wintner and senior managing director Doug Bond. The team was unable to comment on the impact this project will have on the Orange County market.

According to HFF, there has been little large-scale development of authentic creative-office space in Orange County to date, significantly lagging the trend in Los Angeles, San Francisco and Silicon Valley. FLIGHT will be the first purpose-built creative office campuses of its kind in the county.

Due to shifting company demands for creative space and the relative scarcity of alternatives to fit such demand in the market, Lincoln Property Co. believes the project will attract a diverse, high-quality tenant roster, HFF reports. In the future, Phase II of FLIGHT will be able to accommodate an additional 550,000 rentable square feet of creative-office space.

As GlobeSt.com previously reported, at the end of 2016, FLIGHT underwent “nuanced, thoughtful and impactful refinements that are additive to the user experience or improve the efficiency and value proposition of the project,” according to Dallas-based Lincoln Property Co.’s EVP Parke Miller. The City of Tustin had approved the disposition and development agreement and associated entitlements with Lincoln for FLIGHT, which marked an important step toward bringing an innovative, mixed-use collaborative office campus to Tustin Legacy.

In April 2016, GlobeSt.com reported that the project reflects major changes in office use, bringing the outdoors in and offering a multitude of quality food options and an authentic take on fitness and conferencing, according to Lincoln Property Co.’s EVP Kevin Hayes. The campus, formerly known as Cornerstone I at Tustin Legacy, will be woven through 38.74 acres in the Airport office market at the intersection of Barranca Pkwy. and Armstrong Ave.

The project will offer tenants will direct access to a park, artwork, dining and retail and areas for indoor or outdoor meetings. Construction is now expected to be completed in early 2019.