$21.63 Million in Acquisition Financing Arranged by IPA Capital Markets
Jun 27, 2016

LOS ANGELES, June 27, 2016 – Institutional Property Advisors Capital Markets (IPACM), a leading provider of debt and equity placements and advisory solutions for major investors, has arranged $21.63 million in bridge financing for the San Fernando Building, one of downtown Los Angeles’ most iconic buildings.

“The San Fernando Building is now part of our client’s Heritage Collection, a portfolio of Los Angeles’ historically significant properties,” says Jake Roberts, first vice president capital markets, IPA. “The purchaser, a long-time client, hired IPA Capital Markets to provide the best loan structure for the repositioning of this distinctive asset, which requires significant renovation capital and a clear vision for the potential of this asset and area of downtown.”

Roberts and Anita Paryani Rice, IPA vice president capital markets, arranged the loan.

“The location is outstanding but still stabilizing, so we had to clearly articulate the borrower’s vision to a forward-looking lender who was comfortable with the building’s historic tax abatements and restrictions,” adds Paryani. “IPA’s deep knowledge of the bridge/value-add financing universe was exactly what our client required.”

The three-year, interest-only debt was arranged at Libor-plus 4.25 percent on a nonrecourse basis.

Located in the recently revitalized portion of Main Street and Spring Street in downtown Los Angeles, the Italian Renaissance Revival-style San Fernando Building was built in 1906 as an office building, renovated in 1911 and converted to lofts in 2002. The nine-story building has 70 residential units and features 22-foot ceilings, original tile floors, elaborate cornice work and sculptured exterior panels. Fourteen offices and the retail space will be converted to live/work use.