Dekel Capital Arranges $59 Million Construction Loan for Los Angeles Creative Office Building
By: Dekel Capital
The loan, which was provided by an institutional fund manager, will be used for the demolition of an existing structure and the construction of a four-story Class-A creative office building that will include 5,581 square feet of ground-level retail and parking for 175 automobiles.
Located at 5950 Jefferson Blvd, the development site sits at the eastern gateway to Culver City, a city that continues to experience an influx of high-tech, media and gaming companies, creating ongoing demand for creative office space. The site is immediately adjacent to Culver City's architecturally distinctive Hayden Tract, home to a wide variety of startups and established technology companies. The site is within walking and biking distance of the La Cienega/Jefferson light rail station on the Metro Expo Line, which connects downtown Los Angeles to Santa Monica.
Vacancies in the West Los Angeles submarket are on the decline, decreasing by 30 bps from the previous quarter to 11.7 percent, according to Cushman & Wakefield. Despite the new office supply that was delivered in 2018, the vacancy rate has dropped by 100 bps year-over-year.
Founded in 2005, Los Angeles-based Urban Offerings has a growing portfolio of adaptive reuse and new construction projects in urban infill sites. The company currently has more than $200 million in creative office, multifamily and retail under development. This is the eighth joint venture between Urban Offerings and Meridian Group.
"Urban Offerings is an experienced sponsor with a strong track record of developing well-designed urban infill properties, including three properties immediately adjacent to the site," said Dekel Capital Principal Shlomi Ronen. "We saw tremendous interest from the capital markets given the strength of the Culver City office market, and, equally important, the experience and successful performance history of Urban Offerings."
Construction is expected to be completed by June 2021.
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 http://www.dekelcapital.com.
DB&R Marketing Communications, Inc.