George Smith Partners Arranges $51M Bridge Loan for Renovation of M-U Property in Newport Beach, Calif.
- Apr 29, 2014
The Lido Marina Village, a 123,400 square-foot mixed-use property in Newport Beach, Calif., is ready for renovation now that a $51.4 million loan has been arranged, courtesy of George Smith Partners.
GSP secured the financing on behalf of the Lido Retail Group, an affiliate of DJM Capital Partners. DJM has owned the property since acquiring it from Vornado Realty Trust in 2013.
Located roughly 40 miles south of Los Angeles on Lido Isle, a manmade island along the coast of Newport Beach, Lido Marina serves an affluent community. Carrying addresses on Newport Blvd., Via Lido and Via Oporto, the nearly five-acre property consists of 14 buildings spanning multiple blocks, and features, retail and restaurant space and a single office structure, as well as 47 boat docks.
It has premier potential, but it’s not in premier shape. Lido Marina had been destined for a renovation by Vornado’s previous partner, Wasserman Real Estate. However, the project, which called for demolishing the buildings and starting over from scratch, never came to pass. Lido Marina’s current state reflects its dire need of an overhaul; it presently has an occupancy level of just 40 percent in a city that, according to a first quarter report by Voit Real Estate Services, has an enviable average retail vacancy rate of just 5 percent.
GSP is confident that DJM is well equipped to transform the diamond in the rough, and surely convinced the lender of the same.
“We have worked with DJM on all their financings for the past 13 years and understand their incredible skill and insight at renovating and managing retail properties,” Steve Bram, a principal with GSP, said in a prepared statement. “Their 2 million square foot retail portfolio is over 96 percent leased.”
When all is said and done, Lido Marina will be reintroduced to its posh community, converted by DJM into an upscale boutique and restaurant property