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4/15/15
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The Runyon Group recently purchased a 29.4k sf industrial complex in Culver City’s Hayden Tract in an off-market deal. The one-acre Bookbindery site is at 8870 Washington Blvd and contains a 22k sf brick, bow-truss building and a similar 5k sf structure.
The acquisition and a planned creative conversion of the site was financed with $13.3 mil in short-term floating rate debt originated by Jonathan Hakakha and Mike Yim of Quantum Capital Partners. Quantum also secured a seven-year, fixed-rate cash-out refinancing of a manufacturing and storage facility in Inglewood that the Runyon Group has owned since the 1970’s. The cash-out financing allowed The Runyon Group to contribute additional equity, thus reducing the loan-to-cost value of the financing to 65 percent.
“Despite a strong and experienced sponsor, the Bookbindery acquisition was not without its challenges,” said Hakakha. “It took a knowledgeable lender to understand the nuances of the asset, the Culver City market, and the overall business plan of the Sponsor. Through a competitive bidding process, we identified a lender that offered extremely attractive terms for spec creative office space,” he said.
The two 1950s’ vintage industrial buildings that make up the Bookbindery –-so named because text books for the University of California system were bound there -- has been used as a special events venue since 2010. The property is located adjacent to Runyon’s The Platform, a 72k sf development with a mix of creative office, retail and entertainment uses. The Platform is expected to be completed in fall of 2015.
A portion of the loan proceeds will be used to renovate and reposition the property, which will feature 22k sf of creative office space, 5k sf of retail space, and an outdoor courtyard when completed Spring 2016.
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