JLL arranges $37.2M financing for LA creative office redevelopment
The property is within an Opportunity Zone in the West Adams submarket
LOS ANGELES, September 19, 2019 – JLL announces it has arranged $37.2 million in bridge financing to complete the acquisition and redevelopment of Exposition 3 into a multi-phase creative office campus adjacent to two metro stations and within an Opportunity Zone in Los Angeles’ West Adams submarket.
JLL worked on behalf of the borrower, The Luzzatto Company, Inc., to arrange the 30-month, floating-rate loan with TerraCotta Group. Loan proceeds will be used to complete the acquisition, fund the construction costs to redevelop the property and cover transaction costs.
After the loan was under application, The Luzzatto Company, Inc. was able to pre-lease the building to Sweetgreen for its new headquarters. The property most recently used as a dairy facility for milk-bottling and distribution. The existing 57,000-square-foot, two-story building has a creative variance of ceiling height, natural lighting and open outdoor space. Situated on 2.18 acres at 3101 W Exposition Boulevard, Exposition 3 is in the West Adams submarket, which is quickly emerging as one of the fastest-growing, most dynamic tech and creative markets in Los Angeles. The property is adjacent to both the new Exposition/Crenshaw light rail station of the LAX line and the existing Exposition/Crenshaw light rail station of the Expo line, which connects three of the region’s predominant employment centers, Santa Monica, Culver City and Downtown Los Angeles.
The JLL Capital Markets team representing the borrower was led by Senior Director Jeff Sause, Senior Managing Director Paul Brindley and Associate Spencer Richley.
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 GP Corp. (“HFF”) prior to being acquired by JLL on July 1, 2019. Brokerage services now provided by Jones Lang LaSalle Americas, Inc., a licensed real estate broker (CA Real Estate License No. 01223413).
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 nearly 92,000 as of June 30, 2019. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com
About Luzzatto Company, Inc.
The Luzzatto Company, Inc. and its affiliates ("TLC") invest in real estate and real estate related debt, with a national portfolio that includes retail, office, multi-family, industrial and film and television studio properties. TLC has a long history of success in each of the foregoing asset classes, achieving returns not often seen in the real estate industry. In fact, TLC has been recognized as one of the premier creative developers in the nation, having developed and managed buildings for companies like Red Bull, Yahoo!, NPR, The Honest Company, FedEx, Quixote Studios, CAA and other industry leaders. For more information, visit luzzatto.company.
The TerraCotta Group (“TerraCotta”) is a private investment firm that specializes in commercial real estate (“CRE”) credit. Founded in 2004, Terracotta aims to fundamentally transform the CRE space with its cutting edge, data-driven approach to direct lending. The firm combines a robust, proprietary underwriting methodology, advanced data analysis capabilities, deep real estate knowledge, and a lean, agile team to create bespoke credit solutions tailored to meet the unique needs of individual borrowers. TerraCotta’s current investment vehicle, the TerraCotta Credit Fund, has a $1 billion lending capacity and a highly responsive, hands-on team that helps position the borrowers and sponsors it partners with for long-term success.