Dealmaker: Bellwether Enterprise Closes $62M for LA Fine Arts District Assets
Michael Tucker firstname.lastname@example.org
Bellwether Enterprise Real Estate Capital LLC, Cleveland, closed two loans totaling $62 million for two office properties in downtown Los Angeles' Fine Arts District.
Both assets are former industrial properties adapted for use as office space. Kevin Mulvaney, Senior Vice President in the firm's Los Angeles office, arranged both loans for a private family firm.
"The Fine Arts District is a hot spot for commercial real estate right now," Bellwether Enterprise President Ned Huffman said.
The deals included $40 million to refinance 2301 East 7th Street, a 257,681-square-foot five-building office complex. The family acquired the abandoned manufacturing complex in 2003. Renovations completed in 2006 converted the property into a gated office complex with brick buildings and walkways. Current tenants include firms from the city's nearby Fashion District as well as import/export, technology and entertainment firms.
Morgan Stanley supplied the 10-year financing, which repaid a commercial bank loan.
Bellwether Enterprise also arranged a $22 million bridge loan for 175,000-square-foot creative office building 1700 Santa Fe Avenue. The property originally housed a gas company and then a tire warehouse until it was rehabbed into a large floorplate, high-ceilinged office/showroom space. At closing, tenants included an import/export company and an art gallery and the project includes an adjacent future restaurant space.
Silverpeak Argentic, New York, supplied the floating-rate bridge loan with a three-year term and two one-year extension options.