November 6, 2018, Los Angeles, CA – Meridian Capital Group, America’s most active dealmaker, arranged $16 million in financing to refinance The Hub – El Segundo, a retail center in El Segundo, CA, on behalf of Decron Properties.
The seven-year loan, provided by a life insurance company, features an extended period of interest-only payments followed by a 30-year amortization schedule. This transaction was negotiated by Meridian Senior Managing Director, Seth Grossman, and Vice President, Jackie Tran, who are based in the company’s Southern California offices.
The Hub – El Segundo is a highly-visible retail center located at 600-630 North Sepulveda Boulevard in El Segundo, CA. The single-story property, which spans 37,000 square feet, was originally constructed by the sponsor in 1990 and underwent extensive renovations in 2016 that included a new façade, outdoor sidewalk and patio, and signage. The property features ample surface and underground parking and is home to notable tenants such as In-N-Out Burger, El Pollo Loco, Anytime Fitness, and FedEx.
Situated just one mile south of the Los Angeles International Airport, The Hub – El Segundo offers easy access to major freeways and the Los Angeles Metro’s Green Line in addition to several leading area employers. El Segundo is an emerging submarket with a daily population of 228,000 and an average household income of $112,000 within a three-mile radius of the property.
“Despite retail properties experiencing more scrutiny and generally less favorable terms in the current lending environment compared to other core property types, this asset was an outlier,” said Mr. Grossman. “A combination of the strong sponsorship, tenancy, recent renovation, and a hard-corner location in a dense market drove lenders to compete heavily for this loan. The outcome was a cash-out refinance with interest-only payments and a great fixed rate.”
Founded in 1991, Meridian Capital Group, LLC is one of the nation's largest commercial real estate finance and advisory firms. Meridian is headquartered in New York with offices in New Jersey, Maryland, Illinois, Florida and California. Working with a broad array of capital providers, Meridian arranges financing for transactions ranging from $1 million to more than $500 million for multifamily, co-op, office, retail, hotel, mixed-use, industrial, healthcare, student housing, self-storage and construction properties. www.meridiancapital.com