Live/Work Community in Studio City Secures Recapitalization Deal Worth $37 Million
By Alex Girda, Associate Editor
One of LA’s strong points will always be its link to the film industry and that appeal is precisely what prompted Cahuenga Pass Development’s Universal Lofts project. The company recently completed a recapitalization on the project, secured by locally based real estate investment banking firm Dekel Capital. The company arranged for a total of $37.5 million in bridge and mezzanine debt for Cahuenga.
The live/work complex offers 67 fully leased condominium units located in Studio City at 3450 West Cahuenga Boulevard, just across the 101 Freeway from Universal Studios, one of the best-known film production venues in the world. Completed in 2008, the project was, until recently, marketed as rental apartment units, with the developer eager to complete the transition to condo designation. The community is divided into nine individual buildings that house three-story, two-bedroom/1.75 bathroom live/work condos. Each of the 67 units offers residents direct garage access. There are 14 different floorplans; the loft-style units also featuring private balconies.
According to a press release announcing the recapitalization, the senior debt was funded by East West Bank while the mezzanine component was handled with the aid of Pembrook Capital. The financing measures have a three-year term and enable the borrower to begin marketing and selling the units as condominiums. Dekel Managing Principal Shlomi Ronen noted that with the help of the two aforementioned companies, the real estate investment banking firm was “able to yield the borrower a rate that was 100 basis points inside of the market.”
Image courtesy of universallofts.com