Prudential Mortgage Capital reports that it originated the loan through its FHA-lending arm, Prudential Huntoon Paige, for the financing and rehabilitation of the 100-year-old Pacific Electric Building, which served as the main terminal for the Pacific Electric Railway, better known as the "Red Car" line.

PE Lofts LLC bought the 489,000-sf building and is converting the space into 314 loft apartments in a project being designed by Santa Monica-based Killefer Flammang Architects, which is designing a number of the Downtown office-to-loft conversions. Built by railroad magnate Henry Huntington, the structure at Sixth and Main streets is one of several office buildings in the area that are being converted to housing. Ken Bernstein, director of preservation issues at the Los Angeles Conservancy, tells GlobeSt.com that the conversion of the Pacific Electric Building is "a very key project at an important corner right in the heart of the residential activity taking place Downtown." He calls it "a building of great importance to Downtown Los Angeles."The former railroad property was turned into a multi-tenant office building after the demise of Pacific Electric, and it has served as a location for a number of movies, including Spiderman, Face Off, Forest Gump, LA Confidential, Traffic and The Fisher King. The building is on the National Historic Register and qualifies for historic tax credits, which PE Lofts LLC sold to a Bank of America subsidiary.

The 40-year, $45.3-million loan for the project carries an interest rate of 5.75% for both the construction and permanent loan and represents 90% of development costs. The financing was processed through multifamily accelerated processing (MAP) guidelines at Housing and Urban Development's Los Angeles office. The Johnson Capital Group, a PruExpress Advisor, arranged the loan. James Lewin, of Prudential Huntoon Paige's Los Angeles office, originated the loan. The building, which includes street-level retail establishments, is expected to open in the first quarter of 2005.