Dealmaker: Quantum Capital Partners Arranges $50M in CMBS Debt

Quantum Capital Partners, Beverly Hills, Calif., arranged two separate commercial mortgage-backed securities loans totaling $50 million to refinance two southern California retail properties.

In the larger of the two financings, Quantum arranged a $37 million interest-only loan that allowed Ko Property Management, Azusa, Calif., to refinance The Shops at South Bay, a 200,000-square-foot shopping center in Los Angeles’ South Bay submarket.

Built in 2005, The Walmart Super Store-anchored center in Torrance, Calif., is 96 percent leased to retailers and restaurants including Lumber Liquidators, Dollar Tree and BJ’s Grill. A car wash will soon begin construction after signing a long-term ground lease for pad space at the 20-acre shopping center.

The loan from Wells Fargo Bank, San Francisco, included interest-only payments throughout its 10-year loan term, said Quantum Capital Partners Vice President Max Mellman, who arranged the financing with Managing Director Jonathan Hakakha.

“This Walmart is one of the nation’s top-grossing locations and as evidenced by this financing, the capital markets continue to favor strong-performing anchored shopping centers located in densely populated urban areas,” Mellman said. He noted increased appetite from both debt and equity providers for credit-rated retailers with a strong following such as Walmart.

“Having Walmart as an anchor draw, The Shops at South Bay occupies one of the best locations for retail in the South Bay,” Hakahka said.

Quantum also arranged a $13 million CMBS loan from Wells Fargo for MC Ventures LLC, Beverly Hills, which refinanced four fully leased retail buildings on La Cienega Boulevard in Beverly Hills. La Cienega Boulevard is commonly called “restaurant row” due to the upscale restaurants that line the boulevard. Tenants include Chef Nobu Matsuhisa’s flagship restaurant Nobu, Fogo de Chao and Gyu-kaku.