LOS ANGELES—George Smith Partners recently arranged financing for the $10.7 million purchase of the two properties, the Windsor building at 3198 West 7th Street and an adjacent development site.
The acquired building, which includes the Windsor Apartments and Prince Restaurant, is a six-story, 73,000-sq.-ft. historic brick structure built in 1927. The 74-unit apartments offer studio, one- and two- bedroom units, as well as a penthouse unit. The building also contains a restaurant space where current tenant Prince Restaurant has been in business for over 17 years. The sale also included the adjacent development property which is currently used for tenant parking. This potential development space includes three R-4 lots totaling approximately 21,700 sq. ft.
Janet Neman with Charles Dunn represented 3198 W LLC as the buyer in the transaction, and Mike Krantz with Krantz Real Estate represented the seller. George Smith arranged $7.4 million in financing for the purchase. According to Shahin Yazdi, vice president at the firm, one issue in achieving the financing for this acquisition was that the client, 3198 W LLC, did not own any other assets at the time of the transaction.
“At first look, the acquisition price for this brick building seemed relatively high to many of our potential lenders,” Yazdi said in a statement. “That issue was easily overcome once we were able to demonstrate the value in the property. The historic distinction of the Windsor building adds great value to the asset, while the development space that was included with the sale provides potential for future expansion.”
The 30-year permanent loan closed with an interest rate of 4.25 percent fixed for seven years, and then floats to a rate of 6-month LIBOR plus 2.35 percent. The loan has an amortization rate of 30 years, closing at 70 percent loan-to-value. According to Shahin, the buyer plans to completely renovate the building and reposition it as one of the premier apartment buildings in Southern California.