Fashion District Assets Land Ultra-Low Rates

LOS ANGELES—Three investment partners have secured $22 million in permanent financing loans for five separate retail properties in the fashion district of Downtown Los Angeles. The individual loans range in value from $1.1 to $8.4 million. The identity of the borrowers and the addresses of the properties are confidential.

The funds from each of the loans will be used to recapitalize the assets. One of the loans was a second trust deed mortgage cash-out with a three-year term and a 4.5% interest rate. “The rate is kind of unheard of in this marketplace,” Jonathan Hakakha, managing director of Quantum Capital Partners, tells GlobeSt.com. “The income of the property has doubled in the last three years. It is a 150,000 square foot building that was used by storage, wholesale and shipping facilities, who would pay $0.30 to $0.50 per foot on 20,000 to 60,000 square feet. As these tenants vacated the building, the landlord broke the space down into smaller spaces to rent them at a lot higher cost per square foot.”