LOS ANGELES—NorthMarq Los Angeles arranged $44 million in acquisition financing for Midtown Shopping Center. The 185,000-sq.-ft. retail facility here in Los Angeles is being purchased by a private based LA County investor.
The three-year interest-only loan was arranged by NorthMarq through a non-recourse bridge lender. It allows the buyer to purchase the property it has a stake in for there decades.
“This was a highly structured transaction for the acquisition of the fee position of an existing shopping center. The sponsor had owned the improvements for over 30 years and was finally able to acquire the dirt underneath the center along with an additional building and excess land,” said Ory Schwartz, SVP and senior director in NorthMarq’s Los Angeles office, in a statement. “At closing, the leasehold and fee estates were merged. There are numerous value-add components to this transaction which will be realized over the coming years.”