BEVERLY HILLS, CA -- Real estate finance advisory firm Quantum Capital Partners has arranged $31.75 million in CMBS debt to refinance a 10-story, 137,254-square-foot mixed-use building in Downtown Los Angeles.
The 10-year interest only, non-recourse loan was secured by The Metropolitan, a historic building constructed in 1913 at 499 S. Broadway at the intersection of Fifth Street. The building was acquired in 1996 by the Sponsor, a local investor operating as 499 S. Broadway LLC,. The top eight floors were converted for residential use in 2011 under the City of Los Angeles’ Adaptive Reuse Ordinance. Designed by renowned architect John Parkinson, whose other well-known local projects include Los Angeles City Hall, the Los Angeles Memorial Coliseum, and Los Angeles Union Station; The Metropolitan is considered one of the finest examples of Beaux Arts Style architecture in Southern California.
The Sponsor’s multimillion-dollar adaptive reuse program included the creation of 88 high-end loft units with 12-foot ceilings, a rooftop pool and spa, penthouse event space, fitness center and resident lounge. The improvements combined with the building’s rich history, architecture and location, allowed the sponsor to quickly lease up the residential component, which is currently 97 percent leased.
The Metropolitan also includes 45,000 square feet of retail space in the basement and first two floors. Retail discounter Fallas Paredes, which opened its flagship store in the building in 1962, currently occupies 42,000 square feet of the retail space. The family-run retailer now operates more than 300 stores in 22 states and Puerto Rico.
“This was a complex transaction with many moving pieces, especially with The Metropolitan being a historic building. The opportunity was well received by the capital markets and our sponsor was pleased with the pricing and overall solution that our team and Natixis structured,” said Jonathan Hakakha, who along with Managing Director Mike Yim arranged the financing.
The loan proceeds were used to pay off maturing loans and return equity to the Sponsor.
About Quantum Capital Partners: Quantum Capital Partners is a leading mortgage banking firm that provides comprehensive real estate finance and advisory services across all major asset classes. We have more than $4 billion of debt and equity financing experience nationwide, working with a wide and diverse network of capital providers. Combined with our comprehensive knowledge of the capital markets that encompass the entire capital stack, Quantum repeatedly delivers expert advice and customized financing solutions on the most complex real estate transactions.