Quantum Capital Secures $33 MM Loan to Refi Luxury Apartments in Downtown Los Angeles

LOS ANGELES - May 8, 2015 - PRLog -- Mortgage banking firm Quantum Capital Partners has secured a $33 million short-term bridge loan for Los Angeles-based developers Illusion Holdings, LLC and Ocean Blue Investments, LLC to refinance The Medallion, a luxury apartment and retail development in downtown Los Angeles.

Located at Fourth and Main in downtown Los Angeles’ historic core, The Medallion features 96 luxury studio, one-, and two-bedroom apartments, 80,000 square feet of street level retail and a 275-car parking garage.  A fully entitled two-acre development site adjacent to the improved property also secures the loan.  Slated for the 300-unit second phase of the Medallion development, the development site is currently leased to a parking lot operator.

The Sponsors were challenged to refinance the existing debt, which was in maturity default, within a short timeframe.  Quantum identified a lender who could underwrite and structure the financing quickly with a certainty of execution.  From application to funding, Quantum Capital Partners Managing Directors Jonathan Hakakha and Mike Yim completed the financing assignment in 10 days.

“The apartment component is 97 percent leased but the Sponsor had struggled to stabilize the street level retail space, making it difficult to find a lender willing to refinance the debt on the project,” said Hakakha.   “Through diligent market research, we were able to substantiate the projected retail rental rates and identify a lender willing to take lease-up risk.  The strength of the market, the value of the development site, and the Sponsor’s track record mitigated the lack of stabilized retail occupancy.  We closed the new financing within 10 days which helped our Sponsor avert costly default penalties,” he said.

Once the street level space is stabilized, the sponsors will move forward with its development plans on Medallion 2.0 to meet the continuing demand for housing downtown.

About Quantum Capital Partners

Quantum Capital Partners (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.