The JV of HDS Group and First Equity plans to begin constructionin the first quarter of 2009 on the project, which will include 44luxury condominiums and nearly 19,000 sf of retail space on of thelast remaining undeveloped sites in Downtown Beverly Hills. Theproject—within walking distance of the Beverly Hills GoldenTriangle—involves three parcels and includes the entire south sideof the 9200 block on Wilshire Boulevard between Maple Drive andPalm Drive.

Dan Fowler, chief executive officer of Connaught, notes that theloan closed "despite the difficult conditions in both the realestate and financial markets." Privately held Connaught focuses onmezzanine debt for mixed use and residential developments,recapitalization of distressed projects and opportunisticinvestments in projects under market stress.

According to previous reports on GlobeSt.com, the project ispart of plans by First Equity to expand its presence on the WestCoast, where it is involved in significant other developments,including projects in Southern California. HDS, which was foundedby principal Hagop Sargisian, said in a GlobeSt.com report lastyear that the 9200 Wilshire site represents a rare opportunity todevelop in an area where new construction is limited not only bylack of development sites but also by local restrictions on densityand building height.