September 18, 2018
Quantum Capital Partners arranged $16 million in long-term first mortgage debt to recapitalize a new 27,000-square-foot retail center in Downtown Los Angeles’ Arts District. Located at 833 E. Third St., the 1930’s bowstring truss warehouse recently underwent a $5-million adaptive reuse, executed by the sponsor, a local investment group operating as Third Art Holdings, LLC.
Completed in 2017, the property is 100% leased to tenants including the Los Angeles flagship gallery of Hong Kong-based Over the Influence, fashion boutique H. Lorenzo, high-end retailer Shinola, ice creamery Salt and Straw and restaurants Salt Bae and Inko Nito.
Proceeds from the 10-year CMBS loan originated by Deutsche Bank, were used to take out the construction loan and return equity to the sponsor, according to Quantum’s Jonathan Hakakha.
“After successfully executing their business plan and drastically increasing both income and value, the timing was right to refinance the debt and recapture significant equity for our sponsors,” said Hakahka.
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