Quantum Capital Secures Financing for Acquisition and Creative Conversion of So Cal Industrial Bldg

BEVERLY HILLS, Calif. - April 14, 2015 - PRLog -- Quantum Capital Partners has originated $13.3 million in financing for The Runyon Group’s off-market acquisition of a 29,357-square-foot industrial complex in Culver City’s Hayden Tract.

         The acquisition and the planned creative conversion of the one-acre Bookbindery site, which includes a 22,000-square-foot brick, bow-truss building and a similar 5,000-square-foot structure at 8870 Washington Boulevard was financed with  short-term floating rate debt.  Quantum also secured a seven-year fixed rate cash out refinancing of a manufacturing and storage facility in Inglewood, CA 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, according to Quantum Managing Directors Jonathan Hakakha and Mike Yim, who arranged the financing.

         “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 72,000-square foot development with a mix of creative office, retail and entertainment uses.  The Platform is expected to be completed Fall 2015.

         “Runyon relied on us to provide a surety of execution – both on the refinance and acquisition – so they could seize on an opportunity to acquire and redevelop the neighboring property that would complement The Platform,” added Yim. “The two loans with two different lenders were under application simultaneously.  We closed the refinance 7 days prior to closing the Bookbindery acquisition.”

         A portion of the loan proceeds will be used to renovate and reposition the property, which will feature 22,000 square feet of creative office space, 5,000 square feet of retail space, and an outdoor courtyard when completed Spring 2016.

About Quantum Capital Partners

Quantum Capital Partners (http://www.quantumcp.com) is a leading mortgage banking firm that provides comprehensive real estate finance and advisory services across all major asset classes. We have more than $3 billion of debt and equity financing experience nationwide, working with a wide and diverse network of capital providers.  Combined with our comprehensive knowledge of the capital markets that encompass the entire capital stack, Quantum repeatedly delivers expert advice and customized financing solutions on the most complex real estate transactions.