$29M Loan Makes Build-to-Suit Possible

LOS ANGELES-Sixteenth Street Medical Center LP has closed on a $28.7 million construction loan from US Bank and will begin immediately on the development of a three-story 50,000-square-foot medical building in Santa Monica, CA.

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.