$8.35M Creative Office Conversion, Bridge Loan;

Property:

A 81,509 sf, 4-story office building in the LAX office market.

Location:

6171 W. Century Blvd.
Los Angeles, CA

Financing:

HRC secured a $8,350,000 bridge loan for the repositioning and renovation of a Class C, 81,509 sf office  building into a modern office building with 12-foot ceiling heights.  The property is the western most office building along the Century Blvd. corridor, one block off of Sepulveda Blvd.  The property was only 54% occupied at average rents of $1.35psf MG at close of escrow.

The business plan calls for a $3,000,000 renovation of the building with projected rents of $2.15psf MG which is a significant discount to the current rents in the surrounding areas of El Segundo, Fox Hills, Playa Vista and Marina Del Rey.

The 3 year bridge loan was provided by a local bank at 70% LTC at a rate of 5%, interest only for 24 months.  The poor market conditions in the LAX market, 30+% vacancy and low rents was a difficult obstacle to overcome in this assignment.