Dealmaker: Pembrook Provides $22.3M Refinancing for Los Angeles Portfolio

Pembrook Capital Management, New York, originated a $22.3 million first mortgage loan to refinance a five-property portfolio in Los Angeles.

The portfolio included four multifamily properties totaling 148 units and one 6,700-square-foot commercial property. The refinancing lowered the sponsor’s interest rate and provided fresh capital to improve residential units and enhance the portfolio’s value.

“This portfolio is heavily weighted toward multifamily, and we continue to see opportunities in urban infill locations for workforce housing,” said Pembrook CEO Stuart Boesky.

Boesky said three of the multifamily properties are in and around central Los Angeles’ Koreatown neighborhood and one property is in nearby Silver Lake. The commercial property is in Beverlywood on the city’s west side, just south of Beverly Hills.

“The residential units are most likely to appeal to workforce tenants and the commercial property to smaller businesses,” Boesky said.

Pembrook Head of West Coast Originations Christopher Simon said Los Angeles has significant renter demand for housing located close to employment centers and public transportation with offers reasonable rents, “especially because most new product in Los Angeles comes with extremely high rents given the dearth of developable sites and high land prices,” he said.

In tandem with closing this portfolio refinancing, Pembrook made a donation to the Los Angeles High School of the Arts in Koreatown. The firm matches each of its transactions with a contribution to a local public school; Los Angeles High School of the Arts is the fourth school to receive a contribution since the program launched in early 2017.