Newport Beach, Calif. and Los Angeles (February 17, 2016) – Buchanan Street Partners has provided a $12.9 million loan to Cadence Capital Investments for the purchase of five buildings on Sunset Boulevard in Hollywood. Cadence Capital is in pre-development to deliver a multi-story building that is pre-leased to upscale regional grocer Gelson’s Market.
Gelson’s choice for the seven-parcel assemblage reflects the high traffic count at the intersection of Sunset Boulevard and Gardner Street, plus affluent area demographics. The new store location will be Gelson’s second in Hollywood, following the success of its West Hollywood store. A first quarter 2018 opening is planned.
“This was an attractive investment because of the project’s irreplaceable location in an area of Hollywood that is experiencing substantial redevelopment and revitalization,” said Mark Reese, vice president of Buchanan Street Partners. “Cadence Capital Investments is working on a truncated timeline to meet the increasing demand in the surrounding neighborhood.”
The project is adjacent to the famous Guitar Center on Sunset Boulevard in the heart of Hollywood. A low retail vacancy of 4.4 percent in the West Hollywood market speaks to the high demand by retailers, punctuated by lease rates of approximately $60 per-square-foot. The immediate neighborhood is undergoing a redevelopment renaissance, with new retail shops, restaurants and mixed-use developments either in progress or planned.
“As we grow our active lending platform, this high profile project was the perfect transaction to kick off 2016,” said Reese. “There is currently an increase in opportunity for private lenders to provide acquisition, development and construction loans due to regulatory changes imposed on banks by the Federal government.”
Buchanan Street has invested and structured approximately $17 billion on behalf of institutional and private investors across a broad range of equity and flexible debt real estate investments throughout the United States. In the last year, the company has funded more than $77 million in loans in Nevada, Oregon, California and Arizona.
Buchanan Street originates bridge loans and construction loans for the acquisition, redevelopment, recapitalization or refinance of commercial real estate in primary and secondary western U.S. markets. The company is a balance sheet lender that funds loans that offer flexible lending structures to accommodate varied borrower needs.
ABOUT BUCHANAN STREET PARTNERS
Buchanan Street Partners is a real estate investment management firm that invests debt and equity capital on behalf of institutional and private investors. www.www.buchananstreet.com.