Big Construction Deal Makes an Early Splash in DTLA

Shlomi Ronen is the managing principal and founder of Dekel Capital.

Construction lending slowed down in 2017, but this year, a big construction deal has already closed in Downtown Los Angeles. Urban Offerings and ESI Ventures have secured $122 million in JV equity and bridge lending to develop a 250,000-square-foot creative office property in the fashion district. The project is composed of two properties, a five-story office property located on S. Los Angeles Ave at 8th Street, and the Deardens building, a four-story property located on S. Main Street at 7th Street, which had operated as a department store since the early 1900′s.

“There is some robust demand for both retail and creative office in that part of Downtown Los Angeles,” Shlomi Ronen, managing partner at Dekel Capital, tells GlobeSt.com. “It is in the heart of the fashion district, and there are a lot of fashion tenants that are still in Downtown L.A., and this creative class needs creative office space.” Ronen secured the funding on behalf of the borrowers, along with Malcolm Davies, Principal/Director at George Smith Partners.