SAN DIEGO-The Watt Cos. of Santa Monica and joint venture partner Barrow Street Capital have acquired the note on the 84-unit Broadway Lofts mixed-use project in Downtown San Diego and have recapitalized the property. Watt and Barrow replaced bridge financing on the property with seven‐year non‐recourse financing from Freddie Mac at a 5.51% interest rate for a seven-year term and 30-year amortization at 75% loan-to-value. Watt and Barrow Street Capital also injected new capital into the project in order to enhance the property and reposition it. Erik Svensson, chief financial officer for Watt Cos., says that the recapitalization represents "an important element in our long‐term strategy for the Broadway Lofts" that will "enable Watt to improve operations and enhance property performance in the months to come.” Jeff Burns of Walker & Dunlop helped to arrange the new financing.
Built in 1909 as the American National Bank, Broadway Lofts is a 12-story tower at the intersection of Fifth Avenue and Broadway, adjacent to both the Gaslamp Quarter and the business district. The building’s original walls, columns, floors and architectural details have been preserved through several renovation projects as well as a major adaptive reuse in 2006 that transformed the property into loft‐style apartments above 7,360 square feet of ground‐level retail space.
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