LOS ANGELES—The Ratkovich Co., National Real Estate Advisors and Blue Vista Capital have secured a $225 million loan to finance the final phase of construction of the Bloc. In addition to funding construction, the loan, funded through an institutional balance sheet lender, will replace a $121.6 million CMBS loan.
“There was robust interest from a number of financing sources with a variety capital structures,” John Crump and Paul Brindley, the debt placement team at HFF that secured the funds on behalf of the borrowers, tell GlobeSt.com. “Many lenders were able to get comfortable with the financing request due to the Property's strong leasing velocity, direct access to the metro, and reciprocal mixed-use amenities—retail, office, hospitality, and abundant onsite parking. It's a truly transformational project that will leave its mark on downtown for years to come.”
The joint venture inherited the original CMBS loan in 2013 upon the purchase of the property. The Ratkovich Co. purchased the closed mall, which is being transformed into an open-air mixed-use plaza, for $241 million, while construction costs are estimated at $180 million. The Ratkovich Co. declined to comment on the financing or the final phase of construction for the project.
The project has been under construction for the last three years to transform from a closed mall to an open-air retail center in Downtown Los Angeles, and the largest single mixed-use project in Los Angeles. It includes creative office, a 496-room hotel and retail components. The project will hold its grand opening in the next few months, although many of the retail shops have been open during the renovation, including the Macy's on the site.
LOS ANGELES—The Ratkovich Co., National Real Estate Advisors and Blue Vista Capital have secured a $225 million loan to finance the final phase of construction of the Bloc. In addition to funding construction, the loan, funded through an institutional balance sheet lender, will replace a $121.6 million CMBS loan.
“There was robust interest from a number of financing sources with a variety capital structures,” John Crump and Paul Brindley, the debt placement team at HFF that secured the funds on behalf of the borrowers, tell GlobeSt.com. “Many lenders were able to get comfortable with the financing request due to the Property's strong leasing velocity, direct access to the metro, and reciprocal mixed-use amenities—retail, office, hospitality, and abundant onsite parking. It's a truly transformational project that will leave its mark on downtown for years to come.”
The joint venture inherited the original CMBS loan in 2013 upon the purchase of the property. The Ratkovich Co. purchased the closed mall, which is being transformed into an open-air mixed-use plaza, for $241 million, while construction costs are estimated at $180 million. The Ratkovich Co. declined to comment on the financing or the final phase of construction for the project.
The project has been under construction for the last three years to transform from a closed mall to an open-air retail center in Downtown Los Angeles, and the largest single mixed-use project in Los Angeles. It includes creative office, a 496-room hotel and retail components. The project will hold its grand opening in the next few months, although many of the retail shops have been open during the renovation, including the Macy's on the site.
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