LOS ANGELES, CA – HFF announces $35 million in financing for EastView Apartments, a newly completed, 121-unit, Class A apartment property adjacent to Downtown Los Angeles, California.
The HFF team worked on behalf of the borrower, Lion Real Estate Group, to secure the 12-year fixed-rate loan with an insurance company. The loan, which funded immediately upon receipt of the temporary certificate of occupancy (TCO), includes five years of interest only payments and multiple future funding mechanisms. The rate was locked for three months prior to funding with a spread in the low 100’s.
EastView Apartments is located at 327 N. Boylston Street just outside DTLA, Silverlake and Echo Park. The property comprises a mix of contemporary studio, one- and two-bedroom units ranging from 555 to 1,267 square feet. EastView Apartments offers residents unobstructed views of the city skyline; a fifth-floor sky deck with firepit, grills and dining tables; co-working lounge with refreshment bar and large-screen TV; swimming pool with hot tub and lounge; state-of-the-art fitness center; secured parking; bike share program; and electric car charging stations. The property is currently leasing up quickly due to the location, quality of construction and high-end amenities being offered at a significant discount to other recently constructed buildings in downtown.
The HFF debt placement team representing the borrower included managing director Marc Schillinger and associate Peter Berges.
“We identified that competitive construction take-out financing was available before the property was stabilized due to the quality of the asset and the strength of the sponsorship,” Schillinger said. “Lion locked in the rate before the project was completed and the loan funded immediately at TCO. This allowed Lion to pay off the construction loan and mitigate interest rate fluctuation while they were leasing up the property.”
Holliday GP Corp. ("HFF") is a real estate broker licensed with the California Department of Real Estate, License Number 01385740.
About Lion Real Estate Group: Lion Real Estate Group, LLC is a real estate investment and development firm based in Los Angeles, California. The firm focuses on acquisitions of value add and opportunistic multifamily projects in California, Nevada, Texas, Tennessee and Colorado through direct investments in equity and debt secured by real estate. Lion leverages its principals’ experience in order to create value for its investors through renovation, repositioning, better management and optimum capitalization of its projects. Lion has an entrepreneurial team that possesses a track record in the execution of sophisticated investment strategies and has been a part of over $800 million of joint venture, equity and mezzanine real estate transactions. For more information, visit lionreg.com.
About HFF: HFF and its affiliates operate out of 26 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform, including debt placement, investment advisory, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. HFF, HFF Real Estate Limited, HFF Securities L.P. and HFF Securities Limited are owned by HFF, Inc. (NYSE: HF). For more information, please visit hfflp.com or follow HFF on Twitter @HFF.