Meridian Capital Group, America’s most active debt broker, arranged $98 million in financing for the refinance of a multifamily property and a grocery-anchored shopping center, both located in Los Angeles, CA, on behalf of Decron Properties.
The financing consisted of an $88 million loan secured by the Playa Del Oro II multifamily property, which features 5,000 square feet of retail space, and a $10 million loan secured by the 73,000 square foot Playa Lincoln shopping center. The 10-year loans, provided by a life insurance company, feature five years of interest-only payments and allowed the client to rate lock immediately upon the applications being executed, even though the larger of the two properties was still in lease-up. Both loans closed at the same rate and term and were not cross collateralized or cross defaulted. The transactions were negotiated by Meridian Managing Director, Seth Grossman and Vice President Sarah Kuebler, who are both based in the company’s Carlsbad, CA office.
Playa Del Oro II and Playa Lincoln, located at 7280 West Manchester Avenue and 8701 Lincoln Boulevard, respectively, are comprised of 260 multifamily units and a combined 78,000 square feet of retail space. The buildings are conveniently located at the gateway to Silicon Beach, a high-tech hub for innovation and media. The large influx of well-paying technology companies has created a need for more luxury apartments in the immediate area. Residents enjoy beachfront access less than two miles from the properties, as well as spectacular water views from the western-facing units. Playa Del Oro II, built ground-up by Decron and finalizing its initial lease-up to stabilization this fall, offers luxury rental apartments in a prime location with amenities, including ground floor retail and restaurants, a resort style pool and spa, a fitness center, a business center, lounge areas, a game room and multiple seated fire pits with outdoor cooking and congregating areas. Tenants enjoy close proximity to Playa Vista, shopping, dining and the Los Angeles International Airport.
“Decron’s excellent execution through lease-up, as well as their successful repositioning of the Playa Lincoln shopping center made our roll of generating competitive debt options easier than usual,” explained Mr. Grossman. “When a client exceeds expectations on a project of this magnitude with new leases consistently executed well above initial projections, lender interest naturally will be significant given the trajectory of the asset and the quality of the sponsorship.” he added.
Decron Properties serves as one of the premier diversified real estate development firms in the greater Los Angeles area. Decron specializes in acquiring, developing and managing multi-family apartment buildings as well as various types of commercial shopping centers, marinas, and office building. With the completion of this acquisition, Decron owns and manages 6,700 multifamily units across California, as well as 1.5 million square feet of commercial office and retail, in 55 communities. Visit www.decron.com to learn more.
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