400 South Beverly Drive, a 5-story, 45,000 square foot Class B office building provided the buyer, Beverly Hills Offices, LLC, a value add opportunity to reposition an asset acquired from a special servicer in January 2012 at a price significantly below replacement cost. The asset was approximately 34% occupied and provides an opportunity to increase cash flow by repositioning the asset by taking advantage of its superior location and strong tenant demand from numerous entertainment, medical and professional firms.
The balance sheet portfolio loan provided 75% loan to cost leverage, a term of up to 7 years with 3 years of interest only debt service and was priced at an interest rate of Libor + 2.15% with no floor.
“We are seeing greater movement of distressed assets by the banks and special servicers, facilitated by the availability of financing at very competitive terms for value add assets, even those that are non-cash flowing,” says Yazdani. “400 S. Beverly is an example of how we are working with our clients to take advantage of the improved capital markets environment and capitalize on the availability of the extremely well-priced assets.
Beverly Hills Offices, LLC, is an affiliate of JADE Enterprises, a family owned and operated real estate investment, development, and management company based in Los Angeles that has been in business for over 30 years and is one of the premier private commercial real estate investors in the region.
This is the second financing arranged by Lucent Capital for a Beverly Hills asset in the past six months. In January, Lucent secured a $10.6 Million senior bridge loan for the owners of a mixed-use property located in the “Golden Triangle.”
About Lucent Capital
Lucent Capital (http://www.lucentcapital.com) is a leading boutique real estate finance and investment advisory firm serving real estate owners, investors, developers and financial institutions nationwide. With more than $6 Billion of collective experience through cyclical real estate environments, Lucent Capital’s team of professionals has a proven track record of delivering sophisticated and creative capital solutions for a wide variety of complex real estate transactions on all major product types. Through tailor-made solutions, executable advice, and reliable financial counsel, Lucent Capital provides its clients with highly specialized advisory services spanning the entire capital markets spectrum.