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HOLLYWOOD-Visco Entertainment has lined up $22 million in permanent financing from La Jolla Bank to replace acquisition and construction financing for the former Kress Department store and Frederick’s of Hollywood building, which Visco is turning into a nightclub and corporate event venue. The loan finances both the 31,640-sf building at 6608 Hollywood Blvd. and two nearby retail buildings totaling about 7,160 sf.

Sean Bushe, regional loan officer for La Jolla bank in the San Diego County-based lender’s Beverly Hills office, tells GlobeSt.com that the new financing is a 15-year loan on a 30-year amortization schedule. Bushe says that Visco, which operates clubs in the San Diego area, has nearly completed construction on the conversion of the three-story building into a nightclub, which is expected to open within weeks. The loan was a direct deal between lender and borrower.

The converted building will feature a bar in its basement, a restaurant on the first floor, a corporate events venue on the second floor and Visco’s corporate offices on the third floor. It will also feature a rooftop bar.

Bushe, who has been with La Jolla Bank for 14 years, tells GlobeSt.com that the loan illustrates that current credit market conditions favor portfolio lenders like La Jolla. “When you take all of the conduit lenders out of the market, as well as some of the other lenders, we can get better pricing and more equity,” says Bushe, who began working at La Jolla’s Beverly Hills office early this year to look for more loans in the Los Angeles area.

The 6608 Hollywood Blvd. building was built in two phases in 1917 and 1931, housing the Kress department store until the 1940s, when it became the location of Frederick’s of Hollywood. After the lingerie company moved out, Visco bought the building to convert it to a club and corporate events venue.

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