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| Patio del Moro Apartments, West Hollywood, CA |
LOS ANGELES, CA (July 31,
2017) – Commercial real estate investment banking firm George Smith Partners
has successfully secured bridge financing for the acquisition and condominium
conversion of Patio del Moro, a
seven-unit, courtyard-style apartment community in the West Hollywood submarket
of Los Angeles.
The financing was arranged by George Smith
Partners Vice President Zachary Streit.
Built in 1926 by renowned
architects Arthur and Nina Zwebell,
Patio del Moro is a historically-designated and architecturally-significant
property that was once home to some of the most prominent celebrities in
Hollywood history, including Charlie
Chaplin, Paulette Goddard, Joan Fontaine, Humphrey Bogart, and Suzanne
Pleshette.
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| Patio del Mar |
“This condo conversion is one of the first to take place in West Hollywood since the Recession, a sign that condos are making a comeback in Los Angeles,” explains Streit.
“The property’s historic
significance, coupled with its irreplaceable urban-infill location, presented
an attractive investment opportunity to capitalize on the demand for housing in
West Hollywood. This deal reflects a renewed investor interest in for-sale
residences, as well as strong lender appetite for condos in this market.”
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| Zachary Streit |
He founded Friedman
Capital in 2008, and is also the founder and managing partner of Foxhall
Partners in Washington DC. Brian purchased this property with his older brother Jay, who has been a resident
of Hollywood for decades.
Upon acquisition, the
sponsor plans to renovate the property and apply for a Mills Act Tax Abatement,
which provides economic incentives for the restoration and preservation of
historic buildings by private owners.
“Despite this asset’s prime location and
unique investment potential, the challenge was getting lenders comfortable with
the sponsor’s conversion strategy,” notes Streit. “Given the property’s
historic landmark status and limited on-site parking, negotiating the condo
mapping and release provisions would be difficult and would require an
extensive set of approvals.”
Streit continues, “To
address and resolve these concerns, we focused on demonstrating the sponsor’s
proven track record of successful condo conversions and the pent-up demand for
residences in West Hollywood. Our ability to source an attractive bridge loan
to finance this deal is a testament to our market expertise, as well as the
strength of our capital relationships.”
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| Paulette Goddard |
Located just one block south of the Sunset Strip, in close proximity to a plethora of high-end restaurants, retailers, and music venues, Patio del Moro is situated in the heart of West Hollywood, a supply-constrained, high-demand Los Angeles submarket.
In recent years, West
Hollywood has emerged as one of the most walkable, amenity-rich neighborhoods
in Los Angeles, according to Streit. Notable attractions include entertainment
venues such as the Roxy Theatre and The Troubadour; boutique hotels such as The
Standard; The Pacific Design Center; film, television, and music production
studios; and much more.
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| Brian Friedman |
Designed in the Spanish
Revival courtyard style with distinct Moorish features, Patio del Moro offers
average unit sizes of 1,425 square feet, which are larger than average for this
submarket, and includes a mix of mostly two- and three-bedroom units.
George Smith Partners
secured the $4.5 million loan from a bank with a national lending platform.
Sized to 65% of cost, the bridge loan is interest only and floats at prime plus
0.5%.
The property is located at
8225-8237 Fountain Avenue in West Hollywood, California.
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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