GEORGE SMITH PARTNERS ARRANGES FINANCING FOR THE ACQUISITION AND DEVELOPMENT OF A NEW 95-UNIT MULTIFAMILY PROJECT IN WEST LOS ANGELES
LOS ANGELES, CA – May 4, 2012 – (RealEstateRama) — Commercial real estate investment banking firm George Smith Partners has successfully arranged financing on behalf of its client ADC Realty Group (ADC) for the acquisition and construction of a 95-unit, multifamily property in West Los Angeles. The financing included $11.115 million in joint venture and construction equity, according to Vice President, Jonathan Lee. Lee was assisted by George Smith Partners’ Analyst Shine Cheng.
According to Lee, ADC was approached directly with this development opportunity in late 2011 by the seller. ADC engaged George Smith Partners to place the deal with an institutional equity group in order to secure the development project. ADC is active in the development of a wide array of properties, including single-family homes, commercial, office, hotels, multifamily and self-storage facilities.
“In taking this off-market transaction to potential investors and lenders, one of the challenges we faced at GSP was finding new construction rental comps in the area,” explained Lee. “While this was a disadvantage in our efforts to achieve financing, it did demonstrate to investors the great potential for this project as the first new multifamily construction in the immediate micro-market.”
According to Lee, GSP identified an equity partner that was comfortable with the return on cost due to the prime West Los Angeles location of the property. The property is located on the North East corner of Pico Boulevard and Centinela Avenue with direct freeway access. The property is also only three blocks away from the planned LA Metro Expo Line stop at Olympic and Bundy Blvd. This new metro stop is anticipated to be complete within six months of ADC’s project completion.
“The West Los Angeles area is home to some of the largest tech and entertainment companies in the country. These companies have attracted sophisticated employees that raise both the expectation level of renters, as well as the price point for newly built units,” Lee noted.
Jason Amoroso, Vice President of Acquisitions and General Counsel for Amoroso Companies explained, “In addition to the growth in the local job market, the new metro stop will allow other people to live in the revitalized area of West LA, while easily commuting to work in Downtown.”
“George Smith Partners’ speed and efficiency in arranging the financing for the project was impressive. They arranged a number of meetings with potential joint venture partners for us, and worked diligently to find us the right financing so we could secure this development,” Amoroso added.
About George Smith Partners
Founded in 1992, George Smith Partners is a leading national real estate investment banking firm that specializes in arranging financing for commercial and residential properties, including acquisition, construction, bridge and permanent loans, as well as mezzanine loans, highly leveraged participating loans and joint venture equity. They have arranged over $10 billion of financing in the last 10 years. Additional information about George Smith Partners is available at, www.GSPartners.com .
Contact:
Corynne Randel/ Judith Brower
Brower, Miller & Cole
(949) 955-7940
Crandel (at) browermillercole (dot) com
