Westwood Financial Secures $70M Term Loan

A Los Angeles-based investment and management firm focused on shopping centers has added a significant new chunk of change to its debt capital. 

Westwood Financial, which owns and manages over 125 grocery-anchored properties across the Sun Belt and Southern California, closed on a $70 million syndicated term loan, which is part of an unsecured credit facility. KeyBanc and Capital One (COF) co-led the five-year term loan, with Georgia-based financial services firm Synovus also providing $20 million. 

The new commitments bring Westwood’s credit facility to $325 million, made up of $210 million in term loans and a $115 million revolver. 

“In a time when access to capital resources has become scarce, we have demonstrated a track record of success that has allowed us to deepen relationships with key lenders,” Juyuan Wei, chief financial officer for Westwood, said in a statement. “The cost savings and operational efficiencies of this funding will strengthen our balance sheet and give way to strategic opportunities.”

The 54-year-old firm said it plans to raise more debt as its secured mortgages mature over the next 36 months.

Westwood’s portfolio — which in Southern California includes the Belmont Shopping Center in Long Beach, Magnolia/Vineland in North Hollywood, Olympiad Plaza in Mission Viejo, and Plaza del Rio in San Juan Capistrano — is 97 percent occupied, according to the firm. 

Grocery-anchored retail plazas are considered one of the most stable investment assets, as evidenced by their resilience through the COVID-19 pandemic. Mark Bratt, Westwood’s CEO, told Commercial Observer earlier this year that the submarket has only become stronger in the years since the pandemic ended, fueled by robust rent growth and cash flow. 

Nick Trombola can be reached at ntrombola@commercialobserver.com.