Historic DTLA Mixed-Use Scores $32M Refi
- Jul 21, 2017
Quantum Capital Partners arranged $31.75 million in CMBS debt to refinance The Metropolitan, a 10-story, 137,254-square-foot mixed-use building in downtown Los Angeles that offers both loft-unit apartments and retail space. The 10-year interest only, non-recourse loan was secured by the historic property, with proceeds being used to pay off maturing loans and return equity to the sponsor, operating as 499 S. Broadway LLC.
“Multifamily continues to command aggressive pricing and we were able to take advantage of a competitive bidding process,” Jonathan Hakakha, managing director at Quantum Capital Partners, told Multi-Housing News. “As a result were were able to obtain 10-year interest only financing at better than agency pricing.”
Originally constructed in 1913 by renowned architect John Parkinson, the building was acquired in 1996 by the sponsor, who then converted the top eight floors into apartments in 2011, under the City of Los Angeles’ Adaptive Reuse Ordinance. The multi-million dollar adaptive reuse project, located at 315 W. 5th St., created 88 high-end loft units within the building, including a penthouse level. Still featuring its historic and original architectural elements, the building also includes a 20-foot high arch lobby entrance with floor to ceiling white marble and a granite floor.
Interior features include marble thresholds, stainless steel appliances, granite countertops in the kitchens and bathrooms, washer/dryer hookups, restored picture windows, glossy concrete floors, walk-in closets, fire escape converted balconies, central air and heat, skyline views, open floorplans and 12-foot high ceilings. Residents of the building have access to amenities such as a penthouse event space, fitness center, resident lounge and game room that features a pool table and ping pong, an on-site laundry room, fluff-n-fold dry cleaning services, storage units, bicycle racks, and a rooftop pool and jacuzzi that includes cabanas, lounges, barbecue grills and city views.
“This was a complex transaction with many moving pieces, especially with The Metropolitan being a historic building. The opportunity was well received by the capital markets and our sponsor was pleased with the pricing and overall solution that our team and Natixis structured,” said Hakakha.
The building also includes 45,000 square feet of retail space among the basement and first two floors. Discount retailer Fallas Paredes, which opened its flagship store at the location in 1962, continues to occupy 42,000 square feet of space. Hakakha, along with Managing Director Mike Yim, arranged the financing for the 97 percent leased Metropolitan.
Video and photo courtesy of The Metropolitan