Dealmaker: Quantum Capital Arranges $55M in Construction Financing
Quantum Capital Partners, Beverly Hills, Calif., arranged two construction loans totaling $54.5 million to develop a creative office building in Culver City, Calif. and a Walnut Creek, Calif. multifamily commnity.
“We have seen an increase in lenders’ appetite for construction debt between the first half of 2017 and the beginning of 2018,” said Quantum Capital Managing Director Jonathan Hakakha. “Based on our conversations with multiple lenders and the amount of construction loans we have under application, we expect an ample supply of construction debt in 2018.”
Quantum secured $38 million for Runyon Group, Los Angeles, to build the third phase of Platform, a mixed-used development in Culver City’s Hayden Tract neighborhood. The 54-month loan will finance the construction of a four-story office property at 8888 Washington Boulevard. When completed next summer, the asset will include 60,000 square feet of office space above 6,000 square feet of street-level retail and a three-level fully automated subterranean parking garage.
“Identifying a capital source to provide construction financing on a project with a speculative office element was challenging,” Hakakha said. “However, after conducting a thorough market survey, we demonstrated the high velocity of leasing activity and demand for the 20,000-square-foot floor plates offered by Platform.”
Hakakha said the main users of these creative office spaces include new media, content providers and production companies.
Quantum Capital Partners Managing Director Mike Yim said the success of Platform’s first and second phase enabled attractive terms for the third-phase construction loan.
Quantum Capital Partners also arranged $16.5 million for Robhana Group, Los Angeles, to build a 48-unit mixed-use apartment complex in downtown Walnut Creek. The five-story, 48-unit apartment building on north Main Street will include 2,700 square feet of ground-level retail.
The eight-year financing included a fixed-rate interest-only component during the first three years, Yim said.
