Tuesday, May 5, 2015

George Smith Partners Secures $22 Million in Financing for Acquisition of a Newly-Constructed Los Angeles, CA Retail Center


Juanita Tate Marketplace, South Central Neighborhood
 Los Angeles, CA
LOS ANGELES, CA – Commercial real estate investment banking firm George Smith Partners has successfully arranged $22 million in financing for its client, Optimus Properties, LLC and Infinity Redevelopment, LLC, for the acquisition of Juanita Tate Marketplace, a 77,000 square-foot, newly constructed retail shopping center in the South Central neighborhood of Los Angeles, California, according to George Smith Partners’ Senior Vice President Shahin Yazdi.

The property was developed in partnership with the City of Los Angeles and the nonprofit organization Concerned Citizens of South Los Angeles (CCSCLA) to bring retail options and jobs to this dense, low income area of the Los Angeles market.

Shahin Yazdi
According to Shahin Yazdi of George Smith Partners, the structure of the acquisition financing was focused on high debt and low equity.

“Our client wanted to secure as much debt as possible for this acquisition in order to conserve the company’s valuable equity,” explained Yazdi. 

“Ultimately, we were able to secure an impressive 90 percent loan-to-close, allowing our Client to bring the least amount of equity possible to the transaction in order to purchase the property.”

Yazdi notes that, when identifying acquisition financing for the property, one factor that made the investment stand out to potential lenders was the property’s valuation, which far exceeded the purchase price of $24 million.

  In fact, some appraisers estimated the property value in the $30 million range.

“In addition to the property’s high appraisals, the asset has strong in-place co-anchor tenants, including CVS and local grocery chain Northgate González Markets,” he said. “These tenants, coupled with the limited supply of nearby retail options made this investment particularly attractive to potential lenders.”

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

Corynne Randel/ Jenn Quader
Brower, Miller & Cole
(949) 955-7940

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