BEVERLY HILLS, CA–Quantum Capital Partners, a leading mortgage banking firm, has secured a $22.3 million, 5-year fixed rate loan and a $6.3 million, 5 year fixed rate loan on behalf of a group of private investors seeking to refinance two properties in the downtown Los Angeles Fashion District. 

According to Jonathan Hakakha, Managing Director at Quantum Capital, “The loans were arranged in spite of some underwriting challenges – the high rents per square foot, the high loan amount per square foot, and short term leases. Additionally, one of the properties only had 18 months of stabilized operating history. Despite attracting multiple CMBS lenders, the borrower elected to complete the transaction with a flexible community bank that did not require reserves or other restrictive conditions. Over the past 6 months we have closed three additional refinances for these clients in this same market and have several more currently under application”, he added.

The first property is located at 777 East 10th Street. The owner purchased and rehabbed the property in 2007 and successfully achieved full lease up at the height of the downturn. It is a four-story, 92,401-square-foot building located on a 26,290-square-foot lot in a high pedestrian area of the district's wholesale core. It offers ground floor showroom space with offices above.

The other property is situated on a 5,950-square-foot lot at 1145 Towne Avenue, just north of 12th Street at the intersection of Ducassey Alley. It was originally built in 1922 and was completely renovated by the current owner in 2009. The building has 11,800 square feet of rentable space that includes nine, two-story suites with ground floor showrooms that have office and storage space overhead. This area is a very high-pedestrian section of the wholesale core. The building is 100% occupied by wholesalers that value its location in this highly trafficked pedestrian area as well as its ability to accommodate vehicular traffic.