Tuesday, June 27, 2017

George Smith Partners Secures $26.5 Million in Financing for Gershwin Apartments and Adjacent Multifamily Community in Hollywood, CA

Gershwin Apartments, Hollywood Boulevard, Hollywood, CA

LOS ANGELES, CA (June 27, 2017) – Commercial real estate investment banking firm George Smith Partners has successfully secured $26.5 million in refinancing for Gershwin Apartments, a 163-unit apartment community with 10,500 square feet of ground-floor retail space, along with acquisition financing for an adjacent nine-unit multifamily asset located in Hollywood, California.

The financing was arranged by George Smith Partners’ Managing Director Shahin Yazdi.

Shahin Yazdi
“East Hollywood is the next up-and-coming neighborhood in Los Angeles,” says Yazdi. “The submarket’s central location, diverse array of cultural icons and entertainment venues, and explosive growth are driving an influx of residents and investment capital to this region, making it poised for tremendous revitalization and ongoing urbanization.”

Located on Hollywood Boulevard, the Gershwin Apartments was acquired by Massie Capital and Glenn & Shannon Dellimore in 2015.

 George Smith Partners arranged a competitive loan for that acquisition at a time when east Hollywood was just beginning to emerge as the next growth area of Los Angeles.

Two years later, after successfully executing the first phase of its renovation plan and exceeding its NOI expectations, the Sponsor requested another loan to refinance the existing loan and complete Phase II of the renovation, while simultaneously purchasing an adjacent multifamily property, bringing the property’s total unit count to 172.

Gershwin Apartments is located at 5533 Hollywood Boulevard, and Gershwin Villas is located at 1714 Garfield Place in Los Angeles, California.

“By merging the two assets, the Sponsor will be able to manage the two parcels as one, resulting in strong investment potential and opportunities for deep value creation,” explains Yazdi. “This investment strategy enables the sponsor to expand its presence as a multifamily owner in the region while leveraging existing demand for urban living in the east Hollywood submarket.”
The Sponsor will also reposition and rebrand the nine-unit multifamily asset as the Gershwin Bungalows, which will feature private patios and share the same resort-style amenities offered at The Gershwin Apartments.
Brian Massie
Brian Massie, Founder of Massie Capital, asserts that his team immediately recognized the value in this expansion opportunity.

“Gershwin Apartments is a unique asset with historic value and deep ties to the local community,” notes Massie. 

“This 1920s art deco building was formerly a hotel and was later redeveloped into an apartment community in 2013 by the previous owner, CIM Group. 

"We plan to further redevelop this property into a luxury apartment community with shared common areas and high-tech features, while also preserving the integrity of its Hollywood charm and historic character.”

For a complete copy of the company’s news release, please contact:

Miki (Conant) Akil / Katie Kea
Brower, Miller & Cole
(949) 955-7940

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