SANTA MONICA, CA—Pacshore Partners and GreenOak Real Estate have secured $17.5 million for a mixed-use property through Berkadia Commercial Mortgage’s Proprietary Bridge Lending Program. The four-story property has 40,000 square feet of office and retail space with a high-profile tenant mix that includes JP Morgan Chase and Mendocino Farms.
“The borrowers are using the money to modernize the retail storefronts and facade, and to lease up the remaining vacancy by delivering a unique, creative office experience in a highly desired location,” Nick Cassino, Berkadia SVP, tells GlobeSt.com. Cassino arranged the financing on behalf of the borrower.
The two-year loan has a floating interest rate with two one-year exclusion options. The loan has a 65% loan-to-value and a 75% loan to cost. According to Cassino, the borrowers chose a floating rate for the flexible debt, which they needed while “executing their business plan.” “Berkadia’s Proprietary Bridge Lending Program was a natural fit because of our experience closing structured deals like this one, highly competitive terms and existing relationship with the borrower,” he adds.
Earlier this year, another mixed-use property in Santa Monica, this one on the Promenade, traded hands for $20 million. The buyers planned to invest an additional $4 million to renovate the property and create creative office space. The 27,000-square-foot property was 50% leased at the time of the sale.