Newport Beach, CA (September 26, 2022) – Buchanan Mortgage Holdings, LLC (BMH), an affiliate of Buchanan Street Partners, L.P., recently closed three loans in California totaling $55 million.
“We are thrilled to continue building upon BMH’s successful track record of providing creative financing solutions to our existing and new client relationships, particularly in our home state of California where we have been headquartered for over 20 years,” said Scott Magoffin, Buchanan’s Head of Debt Originations. “At Buchanan we focus on combining our lending expertise with clients seeking to add value to the local communities in which they invest, which is represented by each of these financings.”
San Diego – Land
BMH provided a $12.25 million non-recourse bridge loan for a 12.5-acre development parcel situated within the coastal cities of Oceanside and Carlsbad in San Diego County, California. The purpose of the loan was to refinance existing debt and provide the sponsor additional time to complete architectural drawings, achieve final development permits and obtain construction financing for a proposed 426-key, Hilton-branded hotel development. This is the first loan that BMH has closed with the sponsor, a Los Angeles-based private investor focused on land development in Southern California markets.
Hermosa Beach – Office Condos
BMH provided a $14.5 million bridge loan for the acquisition and conversion of a four-story, 37,700 square foot office building into for-sale commercial condominiums in the coastal city of Hermosa Beach, California. At the time of loan closing, the property was 74% leased to a mix of 24 wellness medical, event planning and healthcare tenants, and the property was acquired with a condo map previously recorded. The transaction represents BMH’s fifth loan with the sponsor, a privately-held real estate investment company that specializes in the acquisition and conversion of multitenant office and industrial assets into for-sale commercial condos.
Rancho Cordova – Hotel-to-Apartments
BMH provided a $28.3 million bridge loan to finance the acquisition and value-add conversion of the DoubleTree Suites by Hilton into a 158-unit multifamily community located in Rancho Cordova, California, a suburb of Sacramento. The property is well suited for a multifamily conversion given it was originally built as an extended stay hotel and multifamily is a by-right use under the local zoning code. Upon conversion the property will benefit from its immediate proximity to light rail public transit and a common area amenity package that is superior to competitive apartment projects. The sponsor is a joint venture between a fund investor and developer that formed a programmatic partnership focused exclusively on hotel-to-apartment conversions. The subject property represents their twentieth transaction together and second loan with BMH.
ABOUT: Buchanan Street Partners is a real estate investment firm based in Newport Beach, California that focuses on investments in commercial, multifamily, and self-storage properties as well as providing loans as a direct lender. Having invested in over $7 billion of real estate assets in its 22-year history, Buchanan Street has an established track record in the commercial real estate industry. 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.buchananstreet.com