Rodeo Drive Retail Building Refinanced to the Tune of $120M
- Feb 12, 2014
Mesa West has doled out $120.2 million in financing to ECA Capital for the recapitalization of 338-342 N. Rodeo Dr., a 20,700-square-foot retail building in the über-prestigious Golden Triangle area of Beverly Hills.
The double-lot property is a lender’s dream. It’s a trophy asset. It’s occupied by internationally celebrated fashion retailers Tom Ford and Bally. And it features 100 feet of frontage along Rodeo Drive, which is second only to Manhattan’s famous shopping stretches on the list of the top high street retail destinations in the Americas, according to a report by commercial real estate services firm Cushman & Wakefield Inc. C&W arranged the financing with Mesa West on ECA’s behalf.
“There was a very high level of lender interest in the opportunity and the interest was based on the irreplaceable nature of the real estate,” Chuck Hoag, managing director with C&W, told Commercial Property Executive.
The financing Mesa West provided included $30.2 million of mezzanine debt and preferred equity that was sold to an account managed by BlackRock upon the transaction’s closing.
ECA plans to utilize proceeds from the loan to retire existing debt on 338-342 N. Rodeo, as well as reposition the property, an endeavor that Mesa West found appealing. As Ronnie Gul, principal with the portfolio lender, said in a prepared statement, the asset is “well-positioned to capitalize on the increasing demand by luxury goods tenants for well-located high-street retail.”
Indeed, the high-street retail arena is experiencing good times. Per the C&W report, “Overall, the recovery of the U.S. market, the continued arrival of international retailers and the limited space available will continue to exert pressure on prime rents in luxury locations across the country.”