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10/17/16
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Revere Capital has funded a $15.75 mil loan to continue tenant-related construction and carrying costs on the historic Mayer Building in Hollywood. The four-story, 45.8k sf office and retail property, considered an architectural gem by many, was developed by Louis B. Mayer, one of America’s preeminent film producers and co-founder of Metro-Goldwyn Mayer studio (MGM).
The property, located at 5500 Hollywood Blvd, east of the 101 Fwy at the intersection with Western Ave, was built in 1928. It is included in the National Register of Historic Places.
The loan enables the owner and borrower of the art deco-era property to proceed with business plans to rebuild the offices into market-driven creative office space (typically with higher ceiling heights, exposed HVAC duct and concrete ceilings), improve ground-floor retail areas and build out a subterranean restaurant and lounge.
The borrower purchased the property in 2002 and has completed improvements to-date in phases. The current project constitutes a major repositioning of the asset that includes adding nearly 5k sf of retail space, which will bring the property’s total square footage to 50.5k sf.
“Hollywood is on fire. There is over 200k sf of creative office space under construction, the majority of which is pre-leased. Some 8,000 multifamily units are in various stages of planning and 1,500 are currently under construction. New retail space is coming and three hotels are being built with another dozen or so in the pipeline. Taken together, this is a preferred lending environment and fits our client profile well,” said Revere’s Richard Caldwell, who originated the loan.
In addition to funding the construction costs, the borrower was also able to pay off existing loans on two properties and better control its own destiny in terms of property ownership and maximizing the value of its asset.
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