Calmwater Provides Debt for SoCal Mixed-Use Project
Located in San Gabriel, The One will offer 81 units and street-level retail space.
GE Property Development has secured a $32.25 million construction loan from Calmwater Capital backing the completion of The One, an 81-unit mixed-use property in San Gabriel, Calif.
The project at 101 East Valley Blvd., which is slated a second quarter delivery, will have more than 13,000 square feet of street-level retail. The financing from Calmwater, a commercial real estate debt lender specializing in senior secured bridge and transitional loans, will be used to replace the original construction lender, with a portion of the loan proceeds to be used to fund hard and soft costs needed to bring the project to 100 percent completion. The property was 86 percent completed when the loan closed.
The transaction included an additional $3.75 million in subordinate financing from a Los Angeles-based alternative lender to reduce the borrower’s equity commitment. Further details on that part of the financing were not disclosed.
Larry Grantham, managing principal of Calmwater, said in a prepared statement that the Calmwater team was able to structure the loan to ensure the sponsor would have the necessary funds to address any contingency and deliver the property on time. Other members of the Calmwater team included Vice President Zach Novatt, who heads the firm’s Western United States originations efforts, and Senior Associate DaJuan Bennett. Zalmi Klyne and Karl Weidell of Northmarq’s Los Angeles office arranged the financing. Calmwater Capital, which has originated nearly $4 billion in loans across 234 transactions since 2010, has offices in both Los Angeles and New York City metros.
The One is being built on a nearly one-acre site on East Valley Boulevard near the northeast corner of Del Mar Avenue, considered the center of San Gabriel’s commercial corridor. The property is directly across from the city’s landmark Focus Plaza, which is anchored by the popular ethnic grocery store, 99 Ranch Market.
The four-story building will have a mix of studio and one- and two-bedroom market-rate apartments. Common area amenities will include a three-level subterranean parking garage, interior retail plaza and pedestrian promenade, resident sundeck and rooftop garden.
The developer has signed two retail leases and has two letters of intent from two other retail tenants, which will account for 70 percent of the retail space.