$61M Finances Sunset Retail Center

WEST HOLLYWOOD, CA-Owners of the 8000 Sunset Blvd. retail center have lined up $61.2 million in financing for the acquisition of the 171,000-sf property, which they plan to renovate, according to Goldman Sachs Commercial Mortgage Capital. The financing is a non-recourse floating-rate loan under the Goldman Sachs Transitional Loan Program.The shopping center is a venture of Chicago-based Transwestern Investment Co. LLC on behalf of Aslan Realty Partners III LLC and Santa Monica-based Palisades Associates. The $61.2 million will consist of an initial funding of $54.4 million and an unfunded amount of $6.8 million to be provided over the first 36 months to pay for planned renovation and leasing.The financing is composed of an initial three-year term with two one-year extension options. Goldman Sachs Commercial Mortgage Capital will provide 80% of the approved renovation and leasing costs and through its affiliate Archon Group, will act as servicer of the loan and administer future fundings.Adam Falk, a Transwestern SVP, says the company sought the flexible financing structure to capitalize the business plan for the property over the next three to five years. Transwestern arranged the acquisition on behalf of the property's new ownership. In addition, Reeve Benaron and Sirin Pojanasomboon of Stafford Commercial Real Estate also negotiated the retail sale on behalf of the buyer and the seller.The 8000 Sunset property, which occupies a site at the intersection of West Sunset Boulevard and North Crescent Heights Boulevard. The buyers acquired the property from Charles Wang, co-founder and former chief executive of Computer Associates.The 8000 Sunset center was constructed in 1992 and is 98.2% occupied. Its tenants include a mix of national and regional retailers, among them Virgin Records, California Pizza Kitchen, Crunch, and Burke Williams.