Bridge Investment, Rialto Capital Lend $34M on Venice Beach Office Property
Silver Creek Development has nabbed a $34 million debt package to refinance a Southern California office campus, Commercial Observer has learned.
Bridge Investment Group provided the senior loan, with Rialto Capital Management supplying mezzanine financing, sources said. The 63,958-square-foot office asset in Venice Beach is fully leased by social media company Snap Inc. — the parent company of messaging app Snapchat.
Meridian Capital Group brokered the deal, which features interest-only payments. It was negotiated by MCG’s Senior Managing Director Seth Grossman, Executive Vice President Aaron Birnbaum and Vice President Jackie Tran. Meridian officials declined to comment on the lenders’ identities.
“The capital stack prior to refinance consisted of a $30 million senior loan at a well above market rate, as well as a large mezzanine position on top of the senior loan,” Grossman said in a statement. “In addition to paying off the senior loan, the mezzanine lender allowed a portion of the mezzanine loan to be prepaid as well, resulting in a tremendous interest savings across the capital stack.”
Snap signed an 11-year lease in 2015 for the five-building property, which is located at 606-654 Venice Boulevard at the corner of Abbot Kinney Boulevard and one mile from a technology hub called Silicon Beach. The office buildings were renovated in 2016 with interior and exterior updates, along with the addition of a full-service coffee shop, salad bar, kitchen, fitness center, and an auditorium with a 250-seat cinema.
Jim Cooper, director of U.S. investments at REM Finance, a Silver Creek affiliate, said the refinancing would help “lower its costs of capital” on the property, which it acquired in 2019. Cooper added that he’s bullish on Snap’s growth potential as a social media company, given its stock market ascent in 2021.
Bridge Investment Group and Rialto Capital Management did not immediately respond to requests for comment.