42XX, a creative office campus project in Los Angeles’ Westside will arise after receiving $117 million in development financing. The senior loan was given by Bank OZK, and the mezzanine financing was provided by Acore Capital. This is the first time the lenders have collaborated in this way.
The development is located at 4204-4230 Glencoe Avenue in a Marina Del Rey light industrial neighborhood. The site has been owned by Bradmore Group since 1961. The company has sought permission to use it as an office for the past few years.
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The campus will have  151,000 square feet of rentable space. It will be a low-rise building with three-story buildings connected by outside hallways and stairways. Moreover, 42XX will accommodate either single tenants or several users.
Noteworthy, 42XX is one of the first new office construction projects in Los Angeles to move forward since the epidemic struck.
42XX project team and its expectations
Private equity firm Lincoln Property Company, the developer, and the property owner The Bradmore Group will collaborate to construct the campus. The Bradmore Group owns and operates more than 70 structures with a combined square footage of over 1.5 million.
The developer will use Mass wood, a low-carbon substitute for concrete and steel in construction for the project that is designed by Rios.
The Westside of Los Angeles has more than 58 million square feet of net rentable space, making it the largest office submarket. This is according to CBRE’s third-quarter office report.
Despite the fact that office space is struggling in every market, the Westside has a vacancy rate that is 4 percentage points lower than the county average of 14.5%. The office vacancy rate in Downtown Los Angeles is 22.3% for comparison.
According to Greg Grant of CBRE, who negotiated the financing on the borrower’s behalf, “In the office sector today, it is no longer simply about a flight to quality, but rather flight to experience.”
