BEVERLY HILLS, CA—Quantum Capital Partners has arranged a permanent $5.9 million loan on behalf of a private owner to refinance a West Hollywood office building. The new five-year fixed loan with an interest rate of just under four percent, was provided by a local community bank.
The 15,724-sq.-ft.-foot building, located at 936 N. Formosa Avenue in the Mid City West district, is fully occupied and houses the California Department of Motor Vehicles. The DMV lease represents 95 percent of the property’s rental income.
Built in 1948, the one-story, brick building was completely renovated in 2008 by the current owner and features direct access, visibility and exposure from Formosa Avenue. A partial metal mansard, steel-framed canopy façade adds to the building’s curb appeal and prominence.
This is the third loan Quantum Capital has secured for this owner on this property. The first loan in 2007 was a bridge/rehab loan to finance the acquisition and $1 million in tenant build-outs. The second loan in 2008 provided permanent financing, but has been replaced by the current loan at a much better interest rate.