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Dealmaker: Calmwater Capital Originates $12M for California Retail Property
![](https://newslink.mba.org/wp-content/uploads/2024/04/Western-Plaza-Improvements-Calmwater-Capital-650.jpg?w=650&h=306&crop=1)
(Illustration of remodeled property courtesy of Calmwater Capital)
Calmwater Capital, Los Angeles, provided Irvine, Calif.-based West Hive Capital with $12.25 million in short-term first mortgage debt for a neighborhood retail property in Rancho Palos Verdes, Calif.
Michael Guterman of Bellwether Enterprise Real Estate Capital arranged the financing. Jason Ehrenpreis of CBM1 represented both parties in the acquisition and is the leasing broker for West Hive.
West Hive Capital acquired the 44,000-square-foot neighborhood retail property in an off-market acquisition and plans to renovate it.
The three-year, interest-only non-recourse financing was secured by Western Plaza, located at 29105-29229 S. Western Avenue at the intersection of Western and W. Capitol Drive. Some loan proceeds will fund an extensive renovation of the 1950’s-vintage property, which the seller has owned for the past 60 years.
West Hive plans to demolish one of three existing buildings and in its place create a 3,000-square-foot retail outdoor patio that will serve as an amenity for the center’s food and beverage tenants. Other improvements under the multi-million-dollar capital improvement plan include modernized storefronts and architectural facades, contemporary signage, new landscaping and resurfaced 119-space parking lot.
“This is a great, highly trafficked infill location which draws from Rancho Palos Verdes, one of the most affluent communities in southern California,” Calmwater Director Zach Novatt said. He originated the financing. “Investors are drawn to the area for its steady market fundamentals and strong demographics. However, they have been discouraged by the high barriers to entry.”