CBRE’s Capital Markets’ Debt & Structured Finance team secured a $23.1 million bridge and construction loan for the repositioning of the historic nine-level 900 South Hill Street Garage located in the heart of downtown Los Angeles, CA.
Mark Fisher and Alex Furnary of CBRE’s New York office with the assistance of Val Achtemeier of CBRE’s Los Angeles office secured the loan on behalf of the developer, LA based Markwood Enterprises.
Markwood will construct an additional floor and combine and expanded the ground floor space to accommodate a single tenant, Erewhon, a popular organic market. The top three floors will be re-purposed as creative office space and the balance of space will continue to operate as a garage.
“We fully intend to maintain this historic structure’s beautiful façade while internally upgrading the building and repurposing it as a modern mixed-use facility,” said David Wright, the project’s manager. “CBRE did an excellent job of guiding us through the loan process and addressing all of the moving parts involved in the redevelopment.”
“This building’s slightly larger construction component makes it what is known in the business as ‘a heavy lift,’ limiting the field of bridge lenders,” said Mark Fisher, a senior vice president at CBRE who led the financing efforts. “However, as an existing garage that can perpetually generate income and with Erewhon coming in as the new anchor tenant, we believed these factors greatly mitigated the risk.”
Mark Fisher and Alex Furnary of CBRE’s New York office with the assistance of Val Achtemeier of CBRE’s Los Angeles office secured the loan on behalf of the developer, LA based Markwood Enterprises.
Markwood will construct an additional floor and combine and expanded the ground floor space to accommodate a single tenant, Erewhon, a popular organic market. The top three floors will be re-purposed as creative office space and the balance of space will continue to operate as a garage.
“We fully intend to maintain this historic structure’s beautiful façade while internally upgrading the building and repurposing it as a modern mixed-use facility,” said David Wright, the project’s manager. “CBRE did an excellent job of guiding us through the loan process and addressing all of the moving parts involved in the redevelopment.”
“This building’s slightly larger construction component makes it what is known in the business as ‘a heavy lift,’ limiting the field of bridge lenders,” said Mark Fisher, a senior vice president at CBRE who led the financing efforts. “However, as an existing garage that can perpetually generate income and with Erewhon coming in as the new anchor tenant, we believed these factors greatly mitigated the risk.”
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2017 revenue). The company has more than 80,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2017 revenue). The company has more than 80,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
