LOS ANGELES—McFarlane Partners has brought its Park Fifth development to market to find either a presale buyer or a joint venture equity partner. The developer is looking for $400 million for the mixed-use project.
“They are a merchant builder, and they have a substantial amount of capital invested in the project,” Curtis Palmer, EVP at CBRE, tells GlobeSt.com. “Whether we effectuate a presale now or not, we still need to raise joint venture equity to get the asset built. We are looking for either pension funds or REITs on the buyer side. On the JV side, we are looking for pension funds, REITs, sovereign wealth funds, a big international investor or life company. We are obviously trying to get the cheapest cost of capital out there.”
The planned development has 660 multifamily units in two buildings, a 24-story tower and an adjacent mid-sized building. Interior units will feature floor-to-ceiling windows and private balconies, while the building will feature dog walks, a fitness center, pools and lounge areas. The property will also have 12,000 square feet of retail space and 695 parking spaces. “We have had very strong interest,” says Palmer. “There are so many good things about this. It is fantastic product, and it is in arguably it is the best location in Downtown. The property is right next to Bunker Hill and the Financial District, and has a 98 walk score and a 100 transportation score. You can't really do better than that.”
All offers for the presale and the joint venture equity are due on August 19. “Our goal is to get this locked down in August, finish the documentation in September or October, and break around October or November,” says Palmer.
MacFarlane Partners bought the development site in June of last year from Africa-Israel USA. The transaction took nine months of negotiations and eight months of escrow to close. The sales price for the site was not disclosed, however, the seller says that the site sold for 50% more than it was valued two years prior to the transaction.
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