Meridian Capital Group, America’s most active debt broker, arranged $18.5 million in financing to recapitalize a retail property in Sherman Oaks, CA, on behalf of repeat client The Festival Companies, a leading developer and operator of retail and mixed-use properties headquartered in Los Angeles.
The two-year loan, provided by a regional bank, features two years of low rate interest-only payments and a one-year extension option. This transaction was negotiated by Meridian Managing Director, Seth Grossman and Analyst, Andy Strauss, who are both based in the company’s Carlsbad, CA office.
The property, located at 4550 Van Nuys Boulevard in Sherman Oaks, CA, is a single-story, 33,273 square foot retail property that includes newly signed leases to notable tenants including Ulta Beauty, Sprint, Luna Grill and Starbucks. The property is situated one exit east of the 101 and 405 Freeways at one of the busiest intersections in the county.
“Meridian initially arranged Festival’s acquisition financing for the project in 2014 when they purchased the fee position encumbered with a groundlease nearing expiration. The business plan of collapsing the groundlease upon expiration was successfully executed and thereafter the value-add of re-leasing the center with stronger, national tenants gained momentum as Festival brought new life to the project,” said Mr. Grossman. “The purpose of this refinance is to fund these transformative improvements at the property,” he added.
Festival Development Corporation:
Festival Development Corporation is an affiliate of The Festival Companies, a leading developer and operator of retail and mixed-use properties, and a full-service commercial real estate advisory firm. Headquartered in Los Angeles, California, Festival is recognized nationwide as a respected innovator of urban in-fill shopping center redevelopment and ground-up development projects, transforming real estate into quality retail destinations that suit their unique locations and demographics. Since 1980, Festival and its founding principals have successfully acquired, developed, redeveloped and operated more than 120 retail shopping center projects in a broad array of retail property types — including regional malls, high-quality street retail projects, lifestyle center destinations, resort centers, community centers, neighborhood centers, urban retail and retail-driven mixed-use properties. Please visit www.festivalcos.com for more info and a partial track record of completed projects.
About Meridian Capital Group:
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