NEWPORT BEACH and LOS ANGELES (August 28, 2018) – Buchanan Street Partners, a Newport Beach, California-based real estate investment management firm, has provided $4.1 million in short-term bridge loan financing for the acquisition and repositioning of Pacific Apartments, a 13-unit multifamily complex in the Mar Vista neighborhood of Los Angeles, California.
Buchanan Street closed the loan quickly for an unnamed repeat client, providing for 80 percent of the purchase price and renovation costs.
“Our familiarity with the investor and our ability to quickly assess the merits of the business plan for the project enabled us to move very quickly on this loan,” said Joseph Maehler, senior vice president at Buchanan Street Partners. “The project’s location near LA’s Silicon Beach and the strong market fundamentals that define the area also played a major role in our decision.”
Pacific Apartments is located in Mar Vista and is one block from Venice Boulevard and Centinela Avenue, an area in LA’s Westside known for trendy restaurants, coffee shops and specialty stores. Nearby Silicon Beach is home to over 500 technology companies including Google, Apple, Amazon, Yahoo!, YouTube, Facebook, and others.
The property, which was vacant at the time of sale, will undergo a complete renovation, including the addition of two rental units. Extensive interior remodeling is planned, including all new kitchens, plank flooring, modern lighting and energy efficient air conditioning. Exterior upgrades will include new landscaping, painting and façade improvements.
“Mar Vista is one of the last affordable Westside neighborhoods adjacent to the booming Silicon Beach,” added Maehler. “We recognize the value of this asset along with the value that can be created in bringing the older housing stock up to date. Small multi-unit rental properties, consisting of 2 to 49 units are a staple of the Los Angeles housing supply but are also considerably dated and in need of renovation. We see great potential in this local asset class.”
Buchanan Street provides first mortgage capital and structured financing for commercial and multifamily properties. The company’s debt lending platform provides construction and bridge loans in the $3 million to $30 million range.
ABOUT BUCHANAN STREET PARTNERS
Buchanan Street Partners is a real estate investment firm based in Newport Beach, California that invests debt and equity capital on behalf of institutional and private investors. Since its inception, Buchanan Street has invested more than $6.5 billion in real estate debt and equity investments. The company is comprised of a highly skilled team that has invested through multiple real estate cycles, enabling them to identify opportunities and maximize value while prioritizing capital preservation. www.www.buchananstreet.com.
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