BWE Arranges $40.1M in Financing for Four Retail Properties in California

RANCHO PALOS VERDES, SANTA MONICA, FRESNO AND TORRANCE, CALIF. — BWE has arranged four loans, totaling $40.1 million, for four retail and mixed-use properties in California.

The loans include:

• A $12.2 million bridge loan to provide financing for the acquisition and redevelopment of a 28,000-square-foot strip retail property in Rancho Palos Verdes. The loan features a 75 percent loan-to-cost ratio and includes an $8.5 million holdback to complete the full rehabilitation of the property. Mike Guterman of BWE originated the loan from Calmwater Capital on behalf of West Hive Capital. At the time of financing, the property was 67 percent preleased to O’Reilly Auto Parts, Habit Burger, Mattress Firm, Urbane Café and California Fish Grill.
• A $7.7 million non-recourse loan to provide permanent financing for a mixed-use property in Santa Monica. The asset consists of 46 percent office space over 54 percent retail space and was fully leased to seven tenants at the closing of the loan. Max Sauerman of BWE originated the 10-year financing, which offers a 30-year amortization period and prepay flexibility, for the undisclosed borrower. A BWE correspondent life insurance company provided the loan.
• An $11.2 million loan for a 155,569-square-foot retail center in Fresno. The fixed-rate loan, which was locked at the loan application, has a 10-year term with two years of interest-only payments followed by a 30-year amortization period. The rate is fixed for the initial five years, with a rate reset thereafter. Tom Kenny and Josh Boehling of BWE originated the loan through a correspondent life company. The property is currently 91 percent leased to 13 tenants, including dd’s discount, Raising Cane’s Chicken Fingers, O’Reilly Auto Parts and Five Below.
• A $9 million loan to provide financing for a 52,084-square-foot, grocery-anchored retail center in Torrance. At the time of financing, the property was 90 percent leased to 13 tenants, with a new grocery anchor retailer not opening for business until after loan closing. The fixed-rate loan has a three-year term with one year of interest-only payments followed by a 30-year amortization schedule. The loan also has a three-year extension option. Tom Turnage of BWE originated the loan through a correspondent life company.