Bellwether Enterprise Real Estate Capital, LLC (BWE), a national multifamily mortgage banking firm, has finalized a US$90 million permanent placement loan for the financing of 1133 Hope, a Los Angeles apartment community. The rental property, located at 1133 S. Hope St. in the centre of downtown, is an elevator-served, steel-frame, 28-story, 208-unit luxury apartment community set to open in 2020. More than 5,000 square feet of retail space is included in the property. The loan is a long-term financing solution that will replace an ageing construction loan. Z&L Properties owns the building.
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There are studio, one-, two-, and four-bedroom apartments in the mix. Soft-close kitchen drawers, digital locks, higher-than-average ceiling heights, quartz countertops, and private balconies and patios are all available in the residences. A concierge service is provided 24 hours a day, seven days a week at 1133 S. Hope. It is two blocks from the L.A. Live entertainment complex, Crypto.com Arena, and the Los Angeles Convention Center, and is close to restaurants and nightlife. Residents have access to the Harbor Freeway and Interstate 10 thanks to on-site parking. The loan was arranged on behalf of the borrower by Stephen Perricone and Thomas Mazlo, both senior vice presidents at BWE’s Philadelphia office. A multifamily pre-stabilization program was given by the insurance company lender. This enabled the lender to lock in a rate and close with some temporary credit boost.
Commentary on the Bellwether Los Angeles apartment complex
“The property was brand new and in the process of being leased. We sought to find a lender willing to consider rate locking and closing prior to stabilization (at) 95% leased. The property was around 70% leased at the time. The DTLA market had been heavily damaged by COVID and was just now beginning to recover, although leasing discounts were still large, ranging from one to two months on 12-month leases. It was difficult to predict the market’s course and where economic rents would stabilize. “Due to the imminent construction loan maturity, a rapid closure was essential,” stated Stephen Perricone.
