Dealmaker: Quantum Capital Arranges $47M in Los Angeles

Quantum Capital Partners, Beverly Hills, Calif., arranged a 10-year $47 million mortgage to refinance Platform, a 75,000-square-foot mixed-use project on Los Angeles’ west side.

Developer and owner Runyon Group, Los Angeles, will use the Wells Fargo loan proceeds to retire construction debt and equity on the project, which delivered in late 2016.

“Runyon initially tasked us to find them a low-cost floating-rate bridge loan to take out their construction debt and equity,” said Quantum Managing Director Mike Yim, who arranged the financing with Managing Director Jonathan Hakakha.

Yim said while marketing the property to various capital sources, Quantum discovered an appetite from multiple permanent debt lenders for Platform despite the property’s short operating history.

“Due to the unique quality of this asset and the successful track record of the sponsor, there was a tremendous amount of interest from lenders, which gave Runyon multiple financing solutions from which to choose,” Hakakha said. “We settled on a 10-year, non-recourse, $47 million mortgage from Wells Fargo. The financing allowed Runyon to secure maximum permanent loan proceeds at today’s attractive rates before the property reached stabilization.”

Located in a former auto dealership adjacent to the Expo light rail line’s Culver City station, Platform encompasses six buildings across two acres. It includes 40,000 rentable square feet of creative office space and 35,000 rentable square feet of retail and restaurant space. The retail component is currently 98 percent leased to tenants including Reformation, Magasin and SoulCycle. Food and beverage providers include Blue Bottle Coffee, Van Leeuwen, Sweetgreen and The Cannibal.

The fully leased office component houses creative headquarters for Reformation, SoulCycle, digital advertising firm Criteo and restaurant company Sweetgreen.

Yim said this deal represents Quantum’s fifth assignment from Runyon Group.