June 23, 2016
Los Angeles-based George Smith Partners arranged $12.5-million in acquisition financing for the William Penn Apartments, a 200-unit multifamily property in LA’s emerging Westlake neighborhood. The firm secured a 25% limited recourse bridge loan for the $17-million acquisition on behalf of Massie Capital that closed at Prime plus half with a 4% floor and no reserves.
Originally a hotel, the property is a historic five-story 1920’s brick building, comprised primarily of “bachelor” style units that offer kitchenettes and are smaller than typical studios. The new owners hope to leverage them into trendy “micro” multifamily units as part of a plan to completely overhaul the property.
George Smith Partners’ Shahin Yazdi says,“Westlake has been largely ignored by the influx of capital that has entered surrounding Los Angeles neighborhoods, making this transaction and the buyer’s plans for the property unique.”