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7/18/14
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Lucent Capital has arranged $25 mil in debt financing for the recapitalization of a leasehold interest in 315 South Beverly Drive, a five-story, Class A office building located in Beverly Hills.
The sponsor, a Beverly Hills-based real estate investment firm, acquired the leasehold interest in the 68.4k sf building 2006 and immediately undertook a capital improvement program that included extensive interior and exterior renovations as well as adding 2.4k sf of ground floor retail.
“The sponsor was able to leverage its operating and turnaround expertise, with the building’s superior location and strong tenant demand from professional, entertainment and other high-end tenants, to increase and maintain overall occupancy at more than 95 percent,” said Lucent Capital Managing Director Steven Yazdani.
The structured financing package comprises a $21 mil first mortgage and a $4 mil mezzanine loan totaling 85% LTV. The non-recourse financing provided an attractive 10-year fixed rate with five years of interest-only payments. Both financing tranches were funded by a real estate finance company that is backed by one of the largest sovereign wealth funds.
Financing proceeds are being used to pay off the existing debt on the asset and recapture sponsor equity.
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