Mixed-Use Los Angeles Project Lands $52M Loan
- Dec 02, 2019
Meridian Capital Group has secured $52 million in construction financing for Platinum Equity’s Produce LA, a 113,600-square-foot mixed-use project in downtown Los Angeles. Pacific Western Bank provided the variable-interest loan, which has interest-only payments over its three-year term. The mortgage has two one-year extension options.
The 1.6-acre project site, located in an Opportunity Zone in Los Angeles’ Arts District, is currently home to a 37,100-square-foot cold storage warehouse. The borrower acquired the structure in July from Continuum Partners for $28.9 million, per public records. Plans for the ground-up development call for three floors of office space above approximately 16,000 square feet of retail. The building will also include two levels of subterranean parking and a 4,300-square-foot rooftop terrace.
Located at 640 S. Santa Fe Ave., the site is within 2 miles of downtown Los Angeles. The parcel is one block south of Sixth Street and near the $488 million Sixth Street Viaduct project, which will replace a bridge and add a 12-acre park by 2022. The building is also less than a mile from Interstate 10.
Meridian’s Senior Managing Director Seth Grossman and Vice President Sarah Kuebler brokered the financing for the borrower. In April, Meridian arranged a $100 million refinancing package for a 413,000-square-foot Manhattan office asset.