Jamison Properties has scored a $30 million mezzanine loan to refinance the California Market Center in Downtown Los Angeles, The Real Deal has learned.
Jamison, led by Dr. David Lee, will use the loan proceeds to refinance the existing debt on the property, as capital to complete renovations of the ground floor common areas and retail space, and to fund leasing costs for recently signed and future tenants, according to New York City-based real estate investment firm Square Mile Capital Management, which originated the loan.
IgnitedSpaces, a co-working concept, recently inked a deal for 42,161 square feet at the Fashion District complex, bringing it to 55 percent leased. Jamison is in the midst of a multi-million renovation of the 1.8 million-square-foot campus, which comprises three interconnected 13-story buildings.
“This transaction was a compelling opportunity to provide financing at a secure basis on a unique asset in a growing section of Downtown Los Angeles,” said Square Mile Principal Matthew Drummond. “It also helped us to establish a relationship with one of Southern California’s most active commercial landlords.”
Jamison acquired the complex from London-based dmg World Media for $130 million in 2005. It plans to reposition a portion of the current vacancy as creative office space and lease up the remaining space to fashion and showroom tenants.
“With the fashion industry’s strong foundation at the property, the strong and growing demand for creative office space in the immediate area, and the abundant nearby residential development that is increasing the need for street retail, we feel that the asset has strong potential and is well-positioned for continued success,” Drummond said.
Square Mile was founded in 2006 by Jeff Citrin and Craig Solomon. The firm, which struggled during the downturn of property prices in the wake of the financial crisis, has since bounced back with the recovery of the market. Its investors include sovereign wealth funds and government pensions.
A spokesperson for Jamison did not immediately respond to a request for comment.