HUDSON REALTY CAPITAL FUNDS $4.36 MILLION BRIDGE LOAN FOR SANTA MONICA OFFICE BUILDING
Sponsor Plans to Convert Property to Residential Use
SANTA MONICA, CA – April 4, 2012 – (RealEstateRama) — Hudson Realty Capital LLC (Hudson), a Manhattan-based real estate fund manager, has funded a $4.36 million bridge loan involving a 14,612-square-foot office building in the downtown district. The borrower, a prominent local real estate developer and multi-family operator, is utilizing the loan proceeds to purchase the property and implement the business plan, which includes reinstating the original residential zoning.
Constructed in 1990 as a multi-family building, the four-story complex was converted to office use in 1996 when values were rising. The well-located property is one block from the Interstate 10 access ramp, four blocks from the Third Street Promenade and Santa Monica Place Mall and seven blocks from the beach and Santa Monica Pier. Each of the building’s office suites features high ceilings and large outdoor areas, both of which are highly sought after by tenants.
“This transaction is a good example of a very experienced developer utilizing bridge capital to effectuate a business plan. Hudson was able to close with speed, surety of execution and prepayment flexibility that is not available from conventional debt sources,” said Spencer Garfield, managing director. “In addition, Hudson was able to offer higher loan proceeds as a result of quickly ‘boxing’ the entitlement risk associated with the transaction.”
Since the inception of its initial two funds in 2003, Hudson has closed more than $3.5 billion in transactions while focusing on middle-market investments, generally in the $3 million to $35 million per asset range. Activities include originating, purchasing, participating in, servicing and restructuring special-situation debt. In addition, the company is active in large loan-portfolio acquisitions and asset management activities. Hudson also invests directly in real estate and acquires under-performing assets and other real estate-related instruments.
Headquartered in New York City, Hudson maintains regional offices in Portland, Maine and Fort Myers, Florida. The company has been named among the New York area’s largest privately held companies and largest minority-owned companies, as well as one of the Top 25 lenders nationally.
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Media Contact: Carin McDonald / 201-796-7788 / carin (at) caryl (dot) com
