TODAY'S DEALS: Colliers Sells a Landmark L.A. Loft Property
Colliers sells an L.A. condo that will operate as a rental; Grandbridge lands $30.8 million in acquisition financing; and Dekel Capital arranges $5 million permanent loan for fractured condo complex.
Los Angeles—Colliers International has sold The Brockman Lofts, a mixed-use property with 80 residential loft condominiums located on 7th Street Restaurant Row in Los Angeles. While the sales price was not disclosed, the transaction represented the second highest price-per-unit sale in Downtown Los Angeles’ history. The new owner plans to lease out the lofts as luxury apartments.
The landmark 12-story property has retail space occupied by Bottega Louie, one of the highest grossing restaurants in the city. Built in 1917 as an office and retail tower, The Brockman Lofts was renovated into 80 lofts through an adaptive reuse ordinance in 2010.
Kitty Wallace, executive vice president at Colliers, represented the seller, Wickliffe A. Corp., and the buyer, Simpson Housing LLP, a private Denver-based company.
“The Brockman Lofts attracted an unprecedented amount of attention and we received 26 competitive offers in one month,” says Wallace. “This sale was incredible exciting given the size, quality, location, and fortuitous timing of the deal. Within the first three weeks of marketing, we hosted 82 tours through the building, which demonstrates the frenzy of activity we experienced during the sale.”
Wallace added that the demand for Class A product in Downtown Los Angeles is at an all time high due to record rental growth and high occupancy rates.
Grandbridge lands $30.8M for Atlanta asset
Atlanta—Grandbridge Real Estate Capital has originated and closed a $30.8 million first mortgage loan—completed in conjunction with Mesirow Financial Institution—for the acquisition of Biltmore Apartments, a 276-unit community located within the Midtown Mile of Atlanta. The financing was arranged through Grandbridge’s Freddie Mac CME lending group.
Biltmore Apartments is a mid-rise community with an amenity package featuring a rooftop terrace with an outdoor fireplace, a courtyard with a fountain and grilling areas, and a fully equipped fitness center.
Dekel Capital arranges $5M permanent loan for fractured condo complex
Van Nuys, Calif.‑Dekel Capital, a Los Angeles-based real estate investment banking firm, arranged a $5 million permanent loan on behalf of Woodland Hills, Calif.-based real estate investment firm Cohen & Assoc. to recapitalize the Sonterra Apartment Homes, a 99-unit fractured condominium property in Van Nuys, Calif., announced Dekel Managing Principal Shlomi Ronen.
Sonterra Apartment Homes is a 161-unit condominium development originally built in 1976 as an apartment building. Converted to for-sale condominiums in 2006, sales began in 2007 and continued through early 2008. As a result of a slowdown in sales velocity and pricing, the lender foreclosed on the property in 2009. The remaining 99 unsold units were acquired later that year by Cohen & Assoc. and converted back to rental apartments. Cohen & Assoc.’s leasing and management team were able to lease up the units within six months of acquisition. The property remains 100 percent occupied.
Funded by Preferred Bank, the permanent loan, has a seven-year term with a 30-year amortization, and provided the Borrower a significant cash-out component.
“Over the past 12 months we have seen a variety of financial institutions open up to providing permanent financing for fractured condominium properties as a result of increased competition and a decline in spreads on financing for conventional multifamily properties. says Ronen.
