JLL arranges $119.3M loan for creative office redevelopment
Adaptive reuse of a former Macy’s store in high profile West Los Angeles location
LOS ANGELES, November 14, 2019 – JLL announced today that it has arranged $119.3 million in construction financing for GPI Companies’ West End project, an adaptive reuse, creative office development in West Los Angeles, California.
JLL worked on behalf of the borrower, GPI, to secure the two-year, floating-rate loan through ACORE Capital, a leading commercial real estate finance company.
Upon completion, West End will consist of approximately 230,000 square feet of Class A creative office and ground-floor retail and restaurant space. The project will feature expansive outdoor courtyards, a common outdoor amenity space, large floor plates, abundant new parking, exceptional floor-to-ceiling heights and large windows.
As noted in a recent JLL Snapshots piece, Los Angeles has witnessed an increase in adaptive re-use projects over the past few years given the lack of developable land and increasing demand for creative office space from large office users.
West End is centrally located on six acres at the intersection of Pico Boulevard and Overland Avenue in a densely populated area of West Los Angeles. This location is close to the Interstate 10 and 405 Freeways as well at the newly opened Exposition Line of the MTA, providing convenient commuter access. Additionally, West End is close to the highly affluent neighborhoods of Malibu, Santa Monica, Pacific Palisades, Cheviot Hills and Brentwood, as well as UCLA’s main and medical campus and the headquarters of several entertainment studios.
“Our plans for West End dramatically transform this former department store into the westside’s premier modern office campus,” said Lee Wagman, Managing Partner of GPI. “With easy access to the Expo Line and both the I-405 and I-10 Freeways, West End is set to become a highly desirable and iconic destination for media, technology and financial tenants.”
The JLL Capital Markets team representing the borrower was led by Executive Managing Director Kevin MacKenzie, Managing Director Greg Brown, Senior Director Jeff Sause and Director Peter Thompson.
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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Deal secured by Holliday Fenoglio Fowler LP (“HFF”) prior to being acquired by JLL on July 1, 2019. Co-brokerage services provided by Jones Lang LaSalle Americas, Inc., a licensed real estate broker. CA RE Broker License No. 01856260.
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. Our vision is to reimagine the world of real estate, creating rewarding opportunities and amazing spaces where people can achieve their ambitions. In doing so, we will build a better tomorrow for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.3 billion, operations in over 80 countries and a global workforce of more than 93,000 as of September 30, 2019. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
About GPI Companies
GPI Companies is a full-service commercial real estate investment and operating platform which specializes in the acquisition, development, repositioning, and management of office, retail, multifamily, and mixed-use properties located in greater Los Angeles and the Western United States. The Partners of GPI bring more than 100 years of combined experience, delivering over 20 million square feet of award-winning urban projects with a capitalized value in excess of $6 billion.
About ACORE Capital
ACORE Capital, LP is a commercial real estate finance company focused on originating, acquiring and managing first mortgages, B-notes, mezzanine debt and preferred equity throughout the United States. ACORE, which is an acronym for Alpha Commercial Real Estate, specializes in providing borrowers with customized financing solutions at competitive rates and flexible terms. For investors, ACORE is focused on generating alpha through attractive commercial real estate debt investments coupled with superior risk management. For more information, please visit acorecapital.com.