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| 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.
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| 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.
“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.
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| 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
