LOS ANGELES, CA - Walker & Dunlop, Inc. announced that it arranged bridge financing in the amount of $138,000,000 for the construction of The Rise Hollywood, a 369-unit 7-story mid-rise apartment project in Los Angeles, California.
Located the heart of Hollywood's Entertainment District, the property features a highly walkable location, boasting immediate access to Hollywood's ample lifestyle amenities, a multitude of employers, and approximately 3.8 million square feet of Class A office space, with an additional 950,000 square feet under construction. The property is directly across the street from Academy Square, 350,000 square feet of Class A office space that is 100 percent leased to Netflix.
The bridge financing was arranged by Eric McGlynn, Managing Director within Walker & Dunlop's Capital Markets group. Leveraging their expansive network of capital partners, Mr. McGlynn's team identified Square Mile Capital Management, LLC as the ideal lender for the project. The floating-rate loan includes a four-year term and served to refinance an existing construction loan.
Mr. McGlynn and his team have been focused on structuring nonrecourse bridge loans, construction loans, and equity for larger projects nationwide. Walker & Dunlop has one of the strongest networks in the industry, having arranged financing with over 250 capital sources in 2020 alone. In that same period, the firm completed $11.0 billion of brokered loan originations.
Said Mr. McGlynn, "Rescore has built another first-rate, modern project and we are happy to have secured another great loan from Square Mile amidst a very competitive lending environment." Square Mile also provided an $82 million loan to Rescore for their Rise Flagler Village property in Fort Lauderdale, Florida last October.
The Rise Hollywood is situated on a on a 2.15-acre site and will comprise five seven-story buildings surrounding an amenity deck. Once complete in spring 2021, the elevated recreation deck will include an expansive pool and spa, fire pits, barbecue areas, a rooftop deck with an outdoor movie screen, and modern, open-concept floor plans. Unit sizes average 758 square feet and offer a variety of floor plans ranging from studios to two bedrooms. Each of the luxury apartments will feature nine-foot ceilings, balconies with glass railings, kitchens with stainless steel appliances, quartz countertops and tile backsplashes, plank and porcelain tile flooring, central air and in-unit washer and dryers.
The project is owned, and was developed by, Rescore Property Corp. Rescore is a private REIT managed by Encore Capital Management, manager of three fund vehicles with over $3 billion in assets under management and whose principals are Art Falcone and Tony Avila. Encore, based in Boca Raton, Florida, has 20,000 residential units under ownership and/or development.