—Quantum Capital Partners said it recently secured about $28.6 million in loans for a group of private investors refinancing two properties in the downtown Los Angeles fashion district.
The first property is a four-story, 92,401-square-foot building at 777 East 10th Street. The owner purchased and rehabbed the property in 2007 and achieved fullup at the height of the downturn. The other property, at 1145 Towne Avenue, has 11,800 square feet of rentable space that includes nine, two-story suites with ground floor showrooms that have office and storage space overhead. The 100-percent occupied building was originally built in 1922 and was completely renovated by the current owner in 2009.
Jonathan Hakakha, managing director at Quantum, said in a statement that the loans were arranged in spite of some underwriting challenges, including high rents per square foot, high loan amount per square foot and short term leases. “Additionally, one of the properties only had 18 months of stabilized operating history,” he said. “Despite attracting multiplelenders, the borrower elected to complete the transaction with a flexible community bank that did not require reserves or other restrictive conditions. Over the past six months we have closed three additional refinances for these clients in this same market and have several more currently under application.”