Dekel Capital Arranges $13 Million Non-Recourse Bridge Financing For DTLA Parking Structure
Bridge loan term will allow the property to complete lease-up
The new loan, structured with a 24-month term, allows the borrower to pay off existing debt, provide time for stabilization and set the groundwork for a value-add project with potential for additional revenue streams at the property. Parking tenants at the property include major medical groups, a pediatric and family center as well as major auto dealers. The property has the only operating commercial heliport in Downtown Los Angeles, as well as retail space and capabilities for commercial and film shoots.
"With a large amount of construction activity, particularly for high-end multifamily properties in Downtown Los Angeles, there is a growing supply/demand discrepancy in downtown parking, putting this structure in advantageous position to further absorb the demand," said Shlomi Ronen, founder and principal of Dekel Capital. "By facilitating the bridge financing of an asset situated in a prime location, we have helped position the property for maximum occupancy due to the dearth of parking availability in the immediate area as well as given the borrower time to explore future development options."
The parking garage, located at 240 W. Venice Blvd. in Downtown Los Angeles' South Park district near LA Live, the Los Angeles Convention Center and STAPLES Center, was built in 1991 by Maguire Investments and is controlled via a leasehold with the Los Angeles Unified School District (LAUSD). Since April 2015, the property has been operated under new management, which has continued to unlock its potential given the irreplaceable location of the asset.
The financing reflects Dekel's key competencies, including deep and trusted relationships in the capital markets, access to diverse sources of capital and the ability to secure properly capitalized loans with flexible, non-recourse options and certainty of close. The loan was closed within a tight 35-day timeline, after Dekel completed a thorough market survey.
The 14-level parking garage currently provides 2,500 parking spaces. The property's prime location near office and administrative buildings in addition to apartments allows for significant, long-term increases in parking revenues from a wide variety of institutionalized tenants. The operational helipad on the structure's rooftop level, which is contracted for use by corporate and private individuals;
About Dekel Capital:
Dekel Capital is a Los Angeles-based real estate merchant bank with proven expertise in capital market advisory and private equity in commercial real estate. The firm serves an elite group of commercial real estate operators, investors and developers with an exclusive, boutique approach, allowing them to create tailored solutions that address unique capital challenges. For more information, please visit www.dekelcapital.com.
About Maguire Investments:
Maguire Investments is a Santa Monica, CA-based commercial real estate investment and management firm, currently owning over 360,000 SF of office space, a 14-storeyed car park, and having entitlements to build an additional 850,000 SF of office, apartments and airplane hangar space. The firm has completed the development of more than 25 million square feet of institutional-
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Page Updated Last on: Sep 29, 2016