George Smith Secures $27M for Hollywood Community
- Jun 28, 2017
George Smith Partners secured $26.5 million in refinancing for Gershwin Apartments, a 163-unit community with 10,500 square feet of ground-floor retail space, along with acquisition financing for Gershwin Villas, an adjacent nine-unit asset in Hollywood, Calif. Managing Director Shahin Yazdi represented owners Massie Capital and Glenn & Shannon Dellimore.
Upgrades and merger underway
Massie Capital and Glenn & Shannon Dellimore acquired the Hollywood community located at 5533 Hollywood Blvd. in 2015 and completed the first round of renovations. The current loan is meant to refinance the 2015 acquisition loan and fund the second renovation phase, as well as the off-market acquisition of Gershwin Villas, an asset located at 1714 Garfield Place.
The owners plan to merge the two assets and manage them as one, bringing the property’s total count to 172 units and thus reducing operating expenses. Residents of both properties will have access to added amenities, including a resident lounge, screening room, jacuzzi, rooftop deck and upgraded fitness center. The owners will also reposition and rebrand the adjacent asset as the Gershwin Bungalows, which will feature private patios.
“Gershwin Apartments is a unique asset with historic value and deep ties to the local community,” said Brian Massie, founder of Massie Capital, in a prepared statement. “This 1920s art deco building was formerly a hotel and was later redeveloped into an apartment community in 2013 by the previous owner, CIM Group. We plan to further redevelop this property into a luxury apartment community with shared common areas and high-tech features, while also preserving the integrity of its Hollywood charm and historic character.”
Yazdi believes East Hollywood is the next up-and-coming neighborhood in Los Angeles due to its central location and cultural and entertainment draw, which makes the submarket poised for tremendous revitalization and ongoing urbanization.
“Hollywood is in the midst of a development boom and experiencing a synergy between new, amenity-driven multifamily projects,” said Yazdi in prepared remarks. “Today’s millennials are willing to trade size for location and are demanding luxury amenities that take urban living to the next level.”
Image courtesy of George Smith Partners