George Smith Partners Secures $36 Million in Financing for Renovation of Waterfront Multifamily Community and Marina in Marina Del Rey, CA

Villa Del Mar Apartment Homes, Marina Del Rey waterfront, California

Steve Bram

LOS ANGELES, CA – Commercial real estate investment banking firm George Smith Partners has successfully arranged a $36 million bridge-to-perm loan for client Far West Management for the renovation of its property, Villa Del Mar Apartment Homes, a Marina Del Rey-waterfront, 196-unit, four-building multifamily complex with 209 boat slips, located on a leasehold, according to George Smith  Principal and Managing Director Steve Bram and Senior Vice President David Pascale. 

The unique, non-recourse, $36 million bridge-to-perm loan will provide 100 percent of the project’s renovation costs, reserves, financing costs and all soft costs for the renovation of the 40-plus-year old property. This renovation was required as part of the ground lease extension with the County of Los Angeles.

“Far West Management was seeking a loan that would allow the company to renovate the Villa Del Mar property, while also minimizing refinancing risk for their investors at the completion of the renovation process,” explained Bram.

David Pascale

He continues, “We ultimately secured a financing structure that provided our client with a 24-month bridge loan, which, upon completion of the property renovation and stabilization, will automatically convert to an eight-year permanent fixed-rate loan.”

According to Bram, the lender locked the rate on both the two-year bridge loan and the permanent loan at signing of the application. 

“By locking in the interest rate of the bridge and permanent loan at signing, our client was able to minimize the risk for its private investors by ensuring that a potential rise in interest rates will not affect their returns or risk of refinancing,” Bram said.

Bram noted that the financing also includes multiple loan fundings during the renovation process to minimalize the interest cost of unfunded renovation monies. 

"The loan allows Far West to vacate and renovate the buildings one at a time. Once a building is complete, Far West Management will lease that building at new premium rents, and subsequently take the next building off-line for its renovation. This process will allow the client to continue to generate cash flow from existing rents throughout the renovation."

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

Corynne Randel/ Jenn Quader

Brower, Miller & Cole

(949) 955-7940

Crandel@browermillercole.com