Weintraub-Sperber Lands $20M Construction Loan

MALIBU, CA-Los Angeles based developers Richard Weintraub and Richard Sperber have landed a $20-million construction loan for the development of Malibu Lumber Shopping Center, a 30,000-sf project fronting the Pacific Coast Highway at Cross Creek Road, putting it in close proximity to both Pepperdine University and Malibu Colony, one of Los Angeles’ most exclusive residential communities.

Malibu Lumber Shopping Center is subject to a long term unsubordinated ground lease from the city of Malibu. It is being developed at a total project cost of nearly $700 per leasehold foot. The property will cater to both national and local tenants including J. Crew, Tory Burch and Theory.

The lender is a “money center commercial bank,” according to the loan broker, Sonnenblick-Eichner Co. The loan provides for up to 90% of the total project costs at an interest rate of LIBOR + 250, has limited borrower recourse and required “minimal”, according to Sonnenblick-Eichner.

Sonnenblick-Eichner also recently sourced a $51.2 million acquisition loan for Weintraub for the Sportsmen’s Lodge and Sportsmen’s Lodge Hotel at Coldwater Canyon and Ventura Boulevard in Studio City, CA, one of the most heavily traveled intersections in Los Angeles. This loan represented 90% of the total acquisition cost of the property.