$54.73M in construction financing secured for LA ground-up creative office project

LOS ANGELES, May 24, 2021 – JLL Capital Markets announced today that it has arranged senior and mezzanine construction financing totaling $54.73 million for the development of The Depot, a 107,199-square-foot, 1.5 acre creative office campus in the West Adams micro market of Los Angeles.

JLL worked on behalf of the developer, The Luzzatto Company, to secure a $28 million senior loan through Bank OZK and a $26.725 million mezzanine loan through Related Fund Management.

Upon completion, The Depot will offer a premier stand-alone creative office campus with three levels of outdoor space totaling more than 20,000 square feet, a 225-space subterranean parking garage, 15’ ceiling heights and steel and glass construction with 30’ bays.

The Depot is located two blocks from the intersection of the city’s two major transit lines, the Blue Line and the Crenshaw/LAX line. The Depot is also part of a qualified opportunity zone.

The JLL Capital Markets team representing The Luzzatto Company was led by Senior Managing Director Paul Brindley, Managing Director Jeff Sause and Director Spencer Richley.

“The Luzzatto Company is one of the most highly respected and successful local developers in Los Angeles and was a pioneer in the creative office movement from the beginning,” Sause said. “Designed by HLW, an internationally acclaimed architecture firm, The Depot will follow in the footsteps of Luzzatto’s numerous other developments in the immediate area, including the GOAT headquarters, and the Sweetgreen headquarters, among others, which have all been completed and pre-leased by Luzzatto in the last three years.”

“The Luzzatto Company has led the way in the development of the West Adams micro market, with best-in-class expertise,” stated Aram Zakian, Executive Vice President of originations for Bank OZK’s Real Estate Specialties Group. “We are pleased to continue our relationship with Luzzatto and look forward to a very successful execution.”

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.

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