The financing, which was negotiated on behalf of the borrower by law firm Greenberg Glusker, allows the development team, led by Randall Miller of the Nautilus Group Inc. to move forward on the build-to-suit for UCLA.
As GlobeSt.com previously reported, UCLA signed a 30-year lease for $147 million to occupy the entire building, which will be used as an outpatient surgery facility. At the time, SVP Steve Orchard of Century City-based George Smith Partners—the team that arranged the variable-rate short-term loan—told GlobeSt.com that the developer had five solid offers to choose from prospective lenders on his construction loan, three of them offering a firm commitment on take-out financing.
The loan starts at 5.25% and is keyed to LIBOR. The borrower will seek permanent financing once the building is completed, according to attorney Brian Kang of Los Angeles-based Greenberg Glusker.
"As expected in this economic climate, lenders are taking a much more conservative underwriting approach when making real estate loans, especially construction loans," says Kang. "However, US Bank's financing of this project shows that sophisticated lenders are still willing to make sizable lending commitments at reasonable rates and terms for quality projects that make economic sense."
The building is located at 1223 16th St. across the street from the Santa Monica-UCLA Medical Center and Orthopedic Hospital. The Michael W. Folonis Architects-designed facility will be built adhering to the US Green Building Council's LEED standards and is expected to obtain Gold certification upon completion.
According to a source familiar with the deal, construction starts next month, but further information couldn't be provided by deadline.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
