Redevelopment Financing in Place for Playa Vista Hangars
- Oct 16, 2015
Local real estate merchant bank Dekel Capital recently arranged financing for a creative office redevelopment project in Playa Vista. The company provided a bridge loan worth $9.1 million for Brentwood Capital Partners and The Hangars at Playa Vista project.
According to a press statement announcing the loan, the debt replaces previous financing arranged by Dekel a year ago when the sponsor was in the situation of acquiring the property. The current non-recourse debt facility has a 24-month term, flexible funding schedule and is at 72 percent loan-to-cost ratio.
Located in an area where creative office demand is at an all-time high, the Hangars at Playa Vista will be transformed into a new 22,400-square-foot office campus. Originally built between 1947 and 1951, the property operated as a manufacturing facility working for the Howard Hughes Aerospace facility located in its vicinity. The project aims to transform the two buildings’ metal, semi-circular Quonset huts into a brand new office campus. According to Dekel Capital Principal and Founder Shlomi Ronen, the funds will be used to “transform The Hangars at Playa Vista into a move-in ready, creative office campus that will fit the unique work style of incoming tech tenants.”
Playa Vista has become a tech hotbed over the past few years, generating momentum for the area under the Silicon Beach name. Snapchat’s meteoric rise and commitment to Venice, as well as Hulu’s presence, have continued to cement that image.