Civitas Capital Group Supplies $27M Loan for Santa Monica Retail Project
By Andrew Coen June 13, 2023 12:03 pm
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Civitas Capital Group has supplied a $27.4 million construction loan for developer Blatteis & Schnur’s planned three-story retail project in Santa Monica, Calif., Commercial Observer has learned.
The nonrecourse loan was priced at the Secured Overnight Financing Rate plus 500 basis points, according to Sonnenblick-Eichner Company, which arranged the transaction. The debt package will fund the replacement of a 77-year-old building along Santa Monica’s Third Street Promenade.
“Funding a speculative retail development in today’s environment is very challenging, however we were able to identify a lender who understood the unique location of this asset and the strength of the developer as well as their ability to execute on their business plan,” David Sonnenblick, principal at Sonnenblick-Eichner Company, said in a statement.
Located at 1404 – 1408 Third Street, less than a block from the Nordstrom-anchored Santa Monica Place and about seven blocks from the famed Santa Monica Pier, the new retail development will include a 2,500 square-foot roof deck with views of the Santa Monica Mountains and the Los Angeles Basin. The property’s previous building was razed in summer 2022.
“This project is a perfect example of Civitas’s opportunistic strategy,” Jorge Adler, vice president of investments at Civitas, said in a statement. “Our team is constantly on the lookout for opportunities others miss and this project is one in which we believe we can add substantial value moving forward.”
Blatteis & Schnur officials did not immediately return a request for comment.
Andrew Coen can be reached at acoen@commercialobserver.com
