$8,350,000
Bridge Loan
81,509 Office Building
Los Angeles, CA
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.