Loan of Nearly $42M Finances Condo Conversion

LOS ANGELES-Hammer Residential Ventures of San Diego has secured $41.5 million in bridge financing for acquisition and condominium conversion of the Little Tokyo Lofts in a deal that was arranged by the Irvine office of Johnson Capital. The financing, which is being provided by Corus Bank, represents about 80% of the capital for the $52-million acquisition and conversion of the property, Ryan Chapman of Johnson Capital tells GlobeSt.com.Little Tokyo Lofts, a 161-unit property at 420 S. San Pedro St. Downtown, is a six-story former office building that was originally developed as Westinghouse's West Coast Office. The property housed the Veterans Administration during the 1950s and was used for the manufacturing of denim pants and jackets in the 1960s. In the 1980 it was one of the last saddle and buggy whip factories in North America.Hammer acquired the lofts building from locally based developer Peterson & Tansey, which converted it to lofts in 2002 and has also completed other loft conversion projects in Los Angeles and Long Beach. The property was almost fully occupied at the time of the sale, and several lenders competed for the deal, according to Johnson Capital.Hammer Residential expects to have the property converted to condominiums in about 12 to 24 months. The loft complex includes 29,000 sf of retail space and a four-level 300 space parking structure. The renovated property also features a heated pool, spa and a garden atrium.The project is the latest in a series of condo conversions for Hammer Residential Ventures, whose other recently launched conversion projects include the $35-million, 176-unit Trails of Bonita about 11 miles southeast of Downtown San Diego. Hammer is converting the property in a partnership with ING Realty Partners.