LOS ANGELES-Nobody's calling it a rip-roaring comeback, but those in the mortgage banking business are saying that signs of thawing continue, as illustrated by new loans of $56 million originated by locally based George Smith Partners and Venture West Funding, plus a new mortgage venture by PCCP. George Smith Partners, for example, arranged a $32 million apartment construction loan, while Venture West has arranged $23.7 million in refinancing of two conduit loans for two grocery anchored retail centers. PCCP, in a venture with the Ohio Public Employees Retirement System, will originate first mortgages to "take advantage of the lack of liquidity in the floating-rate commercial mortgage debt space," El Segundo-based PCCP says.
GSP did not name the borrower, but it said the $32 million construction loan "on behalf of an institutional client" will complete a 180-unit project on La Brea Avenue and Hollywood Boulevard in Hollywood. That project was called the Madrone when it was under construction by John Laing homes before Laing went bankrupt, according to previous reports on GlobeSt.com. The property is now owned by Resmark Equity Partners of Los Angeles, which has changed the name of the complex to the Avenue.
Steve Bram, principal and managing director of George Smith Partners, points out that the $32 million construction loan "is the first large construction loan we have completed since the financial turmoil began.” Bram, who was assisted on the financing by George Smith VP Jonathan Lee, adds, "It was challenging to find a lender to do a large construction loan, particularly given the new supply of multifamily product that has recently come on line.”
The 180-unit Hollywood construction project is built over a three level, 465-car subterranean parking garage, with 14,000 square feet of ground-floor retail space. The project was 70% complete when it was purchased, requiring a new loan to complete the construction and cover the lease-up period. The 36-month loan bears a Libor-based rate of interest.
The Hollywood financing follows another recent financing of $40 million
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