Two office properties, one on the Westside and one in the South Bay, have received a total of $26.8 million in financing.
The properties, at 11925 Wilshire Blvd. in Brentwood and 2200 Pacific Coast Highway in Hermosa Beach, total nearly 71,000 square feet.
CBRE Group Inc.’s Bruce Francis, Doug Birrell, Shaun Moothart, Bob Ybarra, Dana Summers and Jim Korinek arranged the financing for Vectra Management Group.
Vectra is a real estate investment, development and management company with an office in L.A.
The Wilshire property loan was for $15.9 million. The three-story office building has roughly 33,000 square feet and ground-level retail. It was built in 1999 and renovated in 2017.
The loan for the Pacific Coast Highway building was for $10.9 million. It has nearly 38,000 square feet, was built in 1982 and renovated in 2015.
“These two office properties continue to perform well amid the current environment, and the refinance enabled our client to take advantage of historically low interest rates while also accessing excess equity to pursue additional investment opportunities,” Birrell said in a statement.
It isn’t the only big finance news of late. Earlier this summer Santa Monica-based WS Communities received a $150 million loan. The loan was for a portfolio of six multifamily assets in Santa Monica and the San Fernando Valley and a development site in Santa Monica.
The money came from Madison Realty Capital, who WS Communities has borrowed from in the past as well.
Avison Young’s Justin Piasecki, Jay Maddox and Ethan Blum brokered the loan. RST Capital Partners’ Rahim Thobani advised on the transaction.
And earlier this year, a 48-unit condominium project in Pasadena received a $34.5 million construction loan. Octane Lending Inc. had purchased the property, then an office building, in 2016 for $40.5 million
Marcus & Millichap’s Stefen Chraghchian and Sharone Sabar arranged the loan.
In April, EAH Housing raised construction financing for Magnolia Villas, a 40-unit affordable community for low-income seniors in Santa Monica. Construction is underway.
Office buildings are in a bit of a holding pattern. It remains to be seen how many people will return to the office once they can. It’s also unclear if office environments will require more space to accommodate social distancing.
CBRE predicts that there will be negative net absorption for office space globally this year and rents will likely fall 3%-6% in most markets next year.
