Dealmaker: Quantum Capital Partners Secures $38M

Quantum Capital Partners, Beverly Hills, Calif., secured $38 million in short- and long-term debt to refinance a three-property downtown Los Angeles portfolio for Robhana Group, Beverly Hills.

The newly completed 60,000-square-foot Downtown West Medical facility and urgent care clinic, an adjacent 50,000-square-foot multi-tenant office building and a new nine-story parking structure serving both buildings secure the financing. The three properties occupy a two-acre lot at 1120 and 1122 Washington Boulevard near the U.S. 10 and CA 110 interchange in the Pico Union/University Park submarket.

To obtain the best financing, Quantum recommended splitting the financing into two separate loans; long-term debt secured by the medical facility and shorter-term debt for the multi-tenant building and parking structure. This required a “significant undertaking” to divide the site into two parcels, said Quantum Managing Director Jonathan Hakakha, who led the financing assignment with Managing Director Mike Yim.

“While the medical facility is fully leased to a blue-chip tenant over a long-term lease, the recently renovated multi-tenant building will need some time to bring expiring rents to market and allow parking revenue to mature,” Hakakha said. “It didn’t make sense to finance all three properties with one loan.”

After helping Robhana process the lot line adjustment with the city, Quantum secured a $28 million 10-year, non-recourse commercial mortgage-backed securities loan to take out the medical office building’s construction financing. A separate three-year fixed-rate loan priced at 150 basis points over the three-year swaps from a money center bank to refinance the multi-tenant building and parking structure. The loans closed simultaneously and both returned equity to the borrower.

The deal represented Quantum’s third assignment for Robhana on this project. Quantum previously arranged the financing to acquire the existing multi-tenant building and development site in 2012 and the construction financing for the medical office facility and parking structure in 2017.