Dealmaker: Meridian Capital Group Arranges $31M

Meridian Capital Group, New York, arranged $30.6 million for retail and hotel assets in Los Angeles and New York.

In Los Angeles, Meridian Senior Managing Director Seth Grossman and Associate Andy Strauss arranged $22 million in financing for the Sherman Oaks Collection, a 31,000-square-foot shopping center in the Sherman Oaks neighborhood.

A commercial mortgage-backed securities lender provided the 10-year fixed-rate interest-only loan to The Festival Cos., Los Angeles.

Large Sherman Oaks Collection tenants include Ulta, Burger Lounge and Luna Grill. The property’s location on Van Nuys Boulevard is close to several restaurants and grocery stores including Ralph’s Market, Mendocino Farms and On The Thirty restaurant.

“This is Meridian’s third time financing the property; we completed the acquisition, construction and now permanent financing assignments,” said Grossman. “When Festival first purchased the fee interest in 2014, a ground lease was set to expire immediately thereafter and the improvements were in poor condition. Festival subsequently took control of the improvements and collapsed the ground lease. After entirely redeveloping and transforming the center from a nonstrategic mix of tenants to a Class A destination for high-end fast-casual dining and local shopping, Festival was ready for long-term permanent financing.”

Meridian also secured $8.6 million to construct a Days Inn Hotel in New York’s Lower East Side neighborhood. Vice Presidents Eli Serebrowski and Eli Finkel negotiated the 24-month loan, which bears interest at 3.75 percent over the 30-day LIBOR rate.

The 14-story property will contain 48 rooms in an area known for its vibrant art scene. Small galleries are sprinkled throughout the neighborhood.

Serebrowski said Meridian found an out-of-state balance sheet lender to provide financing for the hotel development despite an “extremely limited” construction financing environment. He noted the deal closed in 35 days.