$6,345,000 JV-Equity
$9,100,000 Bridge Debt
60,500 sf Multi-Unit Medical Office
Los Angeles, CA
Highland secured $15,445,000 in JV-Equity & Debt to fund the acquisition, renovation, and condo conversion of the medical office building well-located in the San Gabriel Valley. The facility has excellent exposure along a major arterial, and is in close proximity to 3 major hospitals.
The capital raise was very challenging. JV Equity is slowly making a comeback into the marketplace today and the atypical medical-office condo-conversion strategy was a non-starter for a majority of the active capital sources. Highland was able to identify an equity source with a targeted commercial condominium strategy, and was able to demonstrate the unique strengths of the deal and its strong risk-adjusted returns. Highland also arranged the $9.1M non-recourse bridge loan structured with condo releases based upon a $/sf release price well below the pro forma sales prices, providing the ownership with ongoing cash-flow as the Sponsor completes its business plan.