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1/21/15
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Quantum Capital Partners has arranged five separate long-term financings totaling $74.35 mil on properties in Southern California. The transactions enabled each of the borrowers to take cash out of the assets and lock in low interest rates for lengthy terms, between seven and 10 years.
The two largest transactions totaling $48 mil were funded by securitization programs. “CMBS lenders are becoming increasingly aggressive, evidenced by the fact that the market’s $94.1 bil of issuance in 2014 is the most since 2007,” said said Quantum Managing Director Jonathan Hakakha.
The largest of the five financings is a $32 mil loan secured by an 89k sf wholesale/retail showroom and parking garage in the Los Angeles Fashion District. The four-story property, built in 2009, is valued at $48 mil. The 10-year non-recourse loan carries a loan-to-value of 67%.
The financing was used to pay off a loan previously arranged by Quantum in 2012. The new financing enables the borrowers, three tenants in common, to take an additional $10 mil cash-out at closing.
Quantum also arranged a $16 mil loan secured by the Plaza Mayor Shopping Center in Torrance, which is owned by a local partnership. The 79.5k sf Ralph’s grocery-anchored neighborhood center includes tenants Big Lots, Payless, Starbucks and Coldstone Creamery. The property was built in 1976 on a 5.8-acre site and renovated in 2000.
Proceeds were used by the borrowers to retire an existing securitized loan and to take cash out of $5 mil. The non-recourse loan, which closed in 30 days, has a 10-year term and carries a coupon of 4.10%.
A $15.5 mil loan was arranged for a local partnership operating as Anza Partners LLC to refinance a 162-unit apartment building in Los Angeles. The complex contains studio, one-bedroom and two-bedroom units. The 120-month term, non-recourse loan features a seven-year fixed-rate at 3.88% and a yield maintenance prepay.
Quantum also arranged two loans totaling $10.85 mil for Los Angeles-based South Park Group on two West Hollywood area properties. The first was a $6 mil loan secured by a 14k sf mixed-use building. The loan was used to retire an existing floating rate bridge facility used to purchase and renovate the then vacant property in 2012. After completely renovating the 85-year-old building that included the addition of 2k sf of third floor offices and rooftop parking, South Park quickly stabilized the building. The seven-year fixed-rate mortgage, which is 65% loan-to-value, carries a coupon of 4.10%.
A 10-year fixed-rate loan, characterized by a step-down prepay, was secured by an 18-unit multifamily property. South Park recently completed a capital improvement program that included the renovation of the exterior and interior units, creating one of the most desirable rental buildings in the neighborhood. South Park used the proceeds of the $4.85 mil financing to take cash out and lower the interest rate to 4.05%, which was fixed at 10 years. This is the third time that Quantum has assisted South Park in refinancing the asset.
Quantum completed $373 mil in financing for 2014 and currently has in excess of $185 mil under application with CMBS lenders, life companies, banks, and credit unions.
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