LOS ANGELES-ECA Capital has secured $120 million in financing for a 20,727-square-foot retail building on Rodeo Drive in Beverly Hills. Mesa West principal Ronnie Gul originated the financing on behalf of ECA Capital, which plans to use the funds to recapitalize and reposition the asset

"We are excited to provide ECA Capital with a structured and creative financing solution and the certainty of execution they needed to recapitalize the property" says Gul. The financing package included $30.2 million of mezzanine debt and preferred equity. Mesa West sold those funds to a BlackRock-managed account at closing. Chuck Hoag and Trisha Connolly of Cushman & Wakefield secured the financing on behalf of ECA Capital. "This is the premier shopping destination in the country and one of the top luxury, high streets locations in the world," Hoag explains. "When you have irreplaceable real estate like this, there are several of options, but, it took a total team effort to find just the right solution for ECA Capital. We were happy to be a part of the process."

Located at 338-342 Rodeo Drive on a highly sought-sought after retail block, the "trophy asset that is well-positioned to capitalize on the increasing demand by luxury goods tenants for well-located high-street retail," according to Gul. The building is on a double lot and is currently 100% leased to tenants Tom Ford and Bally.

The world's top retailers fight for space on the street, which is considered one of the top 10 retail destinations in the world. More broadly, West Los Angeles is known to attract a high-end consumer demographic, providing strong retail investment opportunities. For example, L3 Capital recently sold a 12,000-square-foot retail space for $27 million to Thor Equities. The property is located in West Hollywood on Robertson Blvd., another top shopping district, and 100% leased to clothing retailer Reiss.