LA Property Lands $120M Permanent Financing
The 10-year loan was secured by George Smith Partners for the 526-unit downtown community.
Da Vinci apartments in Los Angeles. Image courtesy of George Smith Partners
George Smith Partners has secured $120.1 million in permanent financing for Da Vinci Apartments, a 526-unit apartment community in downtown Los Angeles owned by developer G.H. Palmer Associates.
The loan is fixed for 10 years at 4.38 percent with interest-only payments for the first seven years. The lender was not identified. The owner previously received a $135 million permanent loan for the property at 909 W. Temple St. in June 2017 from Bank of America, according to CommercialEdge data.
Gary Tenzer and Dasha Savchenko advised on the financing for George Smith Partners.
Tenzer, a GSP principal & managing director, said in a prepared statement despite Los Angeles’ COVID-based eviction and rent control issues, GSP was able to work with the lender to underwrite the NOI to accomplish the targeted loan amount. He said GSP also facilitated an early rate lock to protect against charges in the interest rate prior to the closing.
GSP has worked with G.H. Palmer in the past. In May 2016, the firm secured $115.3 million in cash-out refinancing for Orsini II, a 566-unit, Class A multifamily property adjacent to the LA Music Center in downtown Los Angeles. The Beverly Hills, Calif.-based real estate company is one of the top multifamily owners in Los Angeles and currently has a portfolio of more than 15,000 units in Southern California valued at more than $6 billion.
Property details
The five- and six-story residential complex is also located within a short walk of the LA Music Center. It is also near the Disney Concert Hall, the Museum of Contemporary Art and LA’s Grand Park. The 1.3 million-square-foot property is near Fremont Avenue as well as the 110 and 101 freeways.
Built in 2016 by G.H. Palmer, the apartment property is currently 98 percent occupied. The community has studio, one-, two- and three-bedroom layouts ranging in size from 478 to 1,267 square feet with an average of 839 square feet. Rents range from $2,271 to $4,466 with an average of $2,936, according to CommercialEdge data.
The apartments have washers and dryers in all units as well as above standard ceiling heights and private balconies or patios. Community amenities include a fitness center, conference and business center, clubhouse, volleyball and basketball courts, three swimming pools, two spas, a dry sauna, tanning beds and a media room. There are about 1,000 parking spaces with covered parking available for an additional monthly fee.
Recent activity
Last year, G.H. Palmer was developing Ferrante, a 1,150-unit community in downtown LA that was the largest residential project by the number of units underway in the Los Angles metro area. The project had received $335 million in construction financing from Goldman Sachs in 2018. Located at 1000 W. Temple St., Ferrante is also part of the developer’s Renaissance Collection and will be built in phases with the first set for delivery this year.
