LOS ANGELES-Real estate investment advisory firm Bergsen and Haller has obtained a $17.2-million loan for Terraces, a 113,458-square-foot, 10-story office building in Downtown Los Angeles' Little Tokyo. The building, formerly named The Little Tokyo Professional Building, has recently been rebranded as Terraces after suffering from underinvestment. The loan will fund an interior and exterior renovation and repositioning of the building, which is currently 74% occupied.

“With the maturation of the Little Tokyo real estate market and the enhancement of the building due to new investment, the sponsor, a family-operated real estate investment group, views the property as a multigenerational asset,” says Robert Shallenberger, the Bergsen and Haller principal who secured the loan.

The sponsor, who is undisclosed, had “limited track record with value-add investments,” according to Shallenberger. He obtained a three-year bridge loan with a 5.8% floating interest rate and an 80% loan-to-cost ratio. Because the interest rate floats over the 30-day LIBOR, the borrower purchased an interest-rate cap to protect against increases in the LIBOR index.