The Chinese developer behind a large multi-family project on Western Avenue near Sunset Boulevard in Hollywood has secured a $30 million bridge loan to help get the project off the ground.
Gemdale Corp. and its local partner La Terra Development plan to build 253 residential units and 4,060 square feet of commercial space on the site, which is currently home to an office building and a parking garage. Gemdale plans to sell the 68,834 square-foot office building and build a new parking structure as well as two seven-story multifamily buildings on the remaining land on the 3.48-acre site.
George Smith Partners’ principal Malcolm Davies brokered the loan deal alongside Kyle Henrickson and Teddy Stutz.
The financing will help the companies dispose of the existing office property and fund the final planning phase of the multifamily buildings, Davies said. The lender was not identified.
A spokesperson for La Terra was not immediately available for comment.
“Even with the obvious strength of the planned project, the existing single-tenant office structure presented an initial challenge for lenders,” Davies said. “When the loan process began, the office building was vacant, resulting in no cash flow on the site.”
During the loan process, the site owner secured a 130-month lease with Zest Financial, a financial technology company, that will occupy 100 percent of the building.