Dekel Capital co-brokers $122 million in JV-Equity and non-recourse Bridge Financing for sponsors Urban Offerings and ESI Ventures. Proceeds will be used to develop a 250,000 square foot Class-A Creative Office Campus in downtown Los Angeles’s Fashion District.
The financing involves two properties: the re-capitalization of sponsor’s ongoing renovations on the Norton Building, a five-story office property located on S. Los Angeles Ave at 8th Street, as well as the acquisition and full repositioning of the Deardens building, a four-story property located on S. Main Street at 7th Street, which had operated as a department store since the early 1900’s.
George Smith Partners and Dekel Capital utilized their extensive networks to identify a JV-Equity investor and Bridge Lender that were capable of understanding the unique positioning and attractive location of the properties, and could provide competitive financing terms.
‘The project offers a rare opportunity to access historic properties with larger floorplates and high ceilings that are in high demand from national tenants that are looking to be part of the burgeoning downtown creative ecosystem, and attract top talent to an office setting that they can truly make their own”, said Shlomi Ronen, Managing Partner of Dekel Capital.
The properties are strategically located on the border between the Fashion District and the Historic Core, where there is a lack of quality options for office tenants. Residential development is already in full swing in the immediate area, with institutional players currently building multiple residential high-rise towers on the same block. The properties are surrounded by boutique shopping, upscale, trendy restaurants and are walkable to the cultural entertainment along Downtown’s historic Broadway District and LA Live.