(Save the dates: RealShare Apartments East comes to the Hyatt Regency in Miami, FL, on February 26, 2013, and RealShare Los Angeles comes to the Hyatt Regency Century Plaza in Los Angeles, CA, on March 27, 2013.)
LOS ANGELES-HFF has completed a $60-million recapitalization of a predominantly grocery-anchored retail portfolio in Southern California. The entity, controlled by DJM Capital Partners Inc., consists of the four-property, approximately 962,000-square-foot DJM Retail Portfolio located in primary retail nodes in Lakewood, Torrance, La Habra and Ventura.
Financing included mezzanine proceeds that were used to recapitalize the portfolio, with some funds distributed to long-term, existing investors, while principals of DJM maintained significant equity positions in the portfolio going forward. Some of the funds will be used to maintain day-to-day management responsibilities of the properties, but additional proceeds from the transaction will be used to acquire more retail centers throughout California in 2013. The individual mezzanine loans are not cross-collateralized or defaulted and were provided by an institutional fund composed of pension and sovereign wealth fund investors managed by a prominent national real estate investment advisor, according to HFF.
The portfolio was 96% occupied as of November 2012, and the tenant roster is dominated by nationally recognized tenants with three of the four portfolio properties having grocery anchors. DJM acquired the portfolio in 2003 and 2004 and has managed it since then, with historical occupancy since 2005 averaging greater than 96%.
The HFF team representing DJM was led by managing director Bryan Ley, along with director John Crump, senior managing director Michael Leggett and managing director Peter Smyslowski. GlobeSt.com was unable to reach the parties involved before deadline to discuss the significant of the refinancing for DJM.
As GlobeSt.com previously reported, earlier this week HFF revealed that its unaudited transaction volume for 2012 will likely exceed $41 billion. The volume recorded by Holliday Fenoglio Fowler L.P. and HFF Securities L.P. covers more than 1,300 transactions across the firm’s capital market platforms and includes debt placement, investment sales, equity placement, structured finance and loan sales.