Square Mile Provides $30M Mezz Loan For LA Mixed-Use Refi
Cathy Cunningham June 21, 2016, 7 a.m.
Square Mile Capital Management has originated a $30 million mezzanine loan for California Market Center, a 1.8-million-square-foot mixed-use property in downtown Los Angeles, Commercial Observer has learned.
The loan was made to an affiliate of real estate investment and management firm Jamison Services, led by David Y. Lee. Jamison has over 100 commercial buildings in Southern California, totaling approximately 22 million square feet. The loan proceeds from the mezz deal will be used to refinance existing debt on the property, provide capital to complete renovations of the ground-floor common areas and retail space, and fund leasing costs for recently-signed and future tenants.
“This transaction was a compelling opportunity to provide financing at a secure basis on a unique asset in a growing section of downtown Los Angeles,” said Matthew Drummond, a principal at Square Mile, in prepared remarks. “It also helped us to establish a relationship with one of Southern California’s most active commercial landlords.”
CMC, located at 110 East Ninth Street in the city’s Fashion District, includes retail, office, and showroom space. It features three interconnected 13-story buildings and also a bank branch and 2,200 parking spaces in two garages.
The property is currently 55 percent leased to a combination of fashion and showroom tenants, creative office tenants, and retail tenants. Jamison plans to renovate the lobby, food court and retail spaces then reposition a portion of the current vacant space as creative offices. The remaining space will be leased to fashion and showroom tenants.
As previously reported by Commercial Observer, Square Mile has been busy in the mezz space of late. In early-May, the firm provided a $19 million loan to RedSky Capital for 241 Bedford Avenue, a mixed-use property in Williamsburg. Later that month, the lender originated a $40 million mezz loan to a partnership between funds managed by Ares Management for the refinancing of the Hyatt Regency Hotel in New Orleans.
Officials at Jamison did not immediately respond to a request for comment.