The loan proceeds will be used primarily to fund the remaining development on the 717 W. Ninth St. project, fund an interest payment reserve and fund a real estate tax and insurance reserve. Meruelo Maddux says that no additional borrowings are projected to be needed to complete the 717 W. Ninth St. project.
The financing was provided by an affiliate of Los Angeles-based Canyon Capital Realty Advisors LLC. Canyon Capital Realty Advisors LLC and its affiliate Canyon Capital Advisors LLC are registered investment advisors and money management--firms located in Los Angeles--with approximately $20 billion of assets under management. The initial term of the loan is 18 months, with five extensions of six months each, subject to extension fees, for a total maximum term of 48 months.
According to Meruelo Maddux, the variable term structure provides the flexibility for the developer to be able to refinance the construction loan or secure permanent takeout financing at a time of its own choosing. The loan carries no exit fees and is pre-payable at any time, with a pre-payment penalty only during the initial 18-month term.
The project, which is seeking a Silver LEED designation, is located at the corner of Flower and Ninth Streets in downtown Los Angeles, across the street from Downtown's only major supermarket, Ralph's, adjacent to the financial district and near the new L.A. Live entertainment and dining complex and the Staples Center.
The 717 W. Ninth St. apartments will feature a private residential entrance, a restaurant and bar. Resort style amenities including a lap pool and whirlpool spa, a fitness facility, a living room/library and an outdoor social area with barbecue grills and fire pits will be located at the seventh level.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.