West Adams project secures $ 49 million construction loan
Almost $ 49 million in construction funding has been arranged for Exposition 3, an approximately 94,000 square foot creative office building in West Adams.
Jones Lang LaSalle Inc. announced the funding on October 8. HIG Partners provided the three-year variable rate construction loan for Luzzatto Co., Inc.
Exhibition 3, which is expected to be completed in 2022, has already been pre-let on a long-term lease. JLL declined to name the tenant, but reports indicate that Culver City-based Sweetgreen will use the space for its corporate headquarters.
The property was once an industrial site. It is being redeveloped into two creative office buildings.
Paul Brindley, Jeff Sause and Spencer Richley of JLL represented the borrower.
Exhibit 3 is located near the new Exposition / Crenshaw light rail station for the LAX line as well as an existing Expo line station.
The construction loan is not the only recent news of JLL financing. In September, the brokerage firm announced that it had secured a loan of nearly $ 57 million for a multi-family portfolio in the Westside. The loan, for an undisclosed borrower, is a 10-year fixed rate Fannie Mae loan of 2.29%. JLL Real Estate Capital is a lender to Fannie Mae.
The West Adams area is booming. One of the region’s largest projects, Cumulus District, sits on the border of West Adams and Culver City. The 11-acre project at the corner of Jefferson and La Cienega is being developed by Carmel Partners Inc.
The project, on the site of the former Cumulus Media Inc. radio station, will have 1,210 residential units with retail businesses anchored by Whole Foods.
CIM Group has also filed plans for a large number of projects in the region, which is designated as an area of opportunity. These zones encourage development in economically troubled places by allowing investors to defer capital gains taxes.
Companies are also seeing the interest in the region. Luxury consignment company RealReal Inc. and sneaker seller 1661 Inc., which operates as the Goat Group, are among the companies that have signed leases in the area.
For reprint and license requests for this article, CLICK HERE.