Dealmaker: Quantum Capital Partners Arranges $32M for Los Angeles Mixed-Use Building

Quantum Capital Partners, Beverly Hills, Calif., arranged $31.75 million in commercial mortgage-backed securities debt to refinance a 10-story, 137,000-square-foot mixed-use building in downtown Los Angeles.

The Metropolitan, a historic Beaux Arts-style building constructed in 1913 at 499 S. Broadway at Fifth Street, secured the 10-year, interest-only non-recourse loan.

Quantum Capital Partners Managing Directors Jonathan Hakakha and Mike Yim secured the financing from Natixis, New York. The loan proceeds paid off maturing loans and returned equity to the sponsor.

The sponsor, a local investor operating as 499 S. Broadway LLC, acquired The Metropolitan in 1996. The top eight floors were converted for residential use in 2011 under Los Angeles’ Adaptive Reuse Ordinance. The sponsor’s multimillion-dollar adaptive reuse program included creating 88 Class A loft units with 12-foot ceilings, a rooftop pool and spa and penthouse event space. The asset’s residential component is currently 97 percent leased.

The Metropolitan also includes 45,000 square feet of retail space in the basement and first two floors. Retailer Fallas Paredes–which opened its flagship store in the building in 1962–currently occupies 42,000 square feet of the retail space. The family-run retailer now operates more than 300 stores in 22 states and Puerto Rico.