$22M Permanent Loan Refinances Kress Building

HOLLYWOOD-Visco Entertainment has lined up $22 million in permanent financing from La Jolla Bank to replace acquisition and construction financing for the former Kress Department store and Frederick’s of Hollywood building, which Visco is turning into a nightclub and corporate event venue. The loan finances both the 31,640-sf building at 6608 Hollywood Blvd. and two nearby retail buildings totaling about 7,160 sf.

Sean Bushe, regional loan officer for La Jolla bank in the San Diego County-based lender’s Beverly Hills office, tells GlobeSt.com that the new financing is a 15-year loan on a 30-year amortization schedule. Bushe says that Visco, which operates clubs in the San Diego area, has nearly completed construction on the conversion of the three-story building into a nightclub, which is expected to open within weeks. The loan was a direct deal between lender and borrower.

The converted building will feature a bar in its basement, a restaurant on the first floor, a corporate events venue on the second floor and Visco’s corporate offices on the third floor. It will also feature a rooftop bar.