Dekel Capital has successfully placed $20 million in bridge financing for the acquisition of an obsolete retail center in Granada Hills, CA (the “Property”).
The 8+ acre site is situated in a desirable location for a mixed-use development in the San Fernando Valley. The existing retail center is currently 79% occupied, lacks a conventional anchor tenant and has considerable deferred maintenance. As a result the Property was not suitable for traditional bank financing. Dekel Capital structured a $20 million, 12-month, non-recourse bridge loan with Buchanan Street Partners that will allow the sponsor to redevelop or reposition the existing retail center.
The San Fernando Valley submarket is one of the tightest multifamily markets in Greater Los Angeles area, presenting a prime opportunity for redevelopment within a supply constrained submarket, said Shlomi Ronen, managing principal and founder of Dekel Capital.
Of the lender, Buchanan Street Partners, Shlomi Ronen said “they were quick to understand the business plan as well as the value creation that our client realized while under contract to acquire the Asset. This gave us and our Client great confidence in their ability to execute on the loan request.”
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