The project, at 3609 10th Ave., is being developed by the Luzzatto Co.
Jones Lang LaSalle Inc.’s Paul Brindley, Jeff Sause and Spencer Richley arranged the loan on behalf of the borrower.
Of the $54.7 million, $28 million was a senior loan from Bank OZK and $26.7 million was a mezzanine loan from Related Fund Management.
“The Luzzatto Co. has led the way in the development of the West Adams micro market with best-in-class expertise,” Aram Zakian, executive vice president of originations for Bank OZK’s Real Estate Specialties Group, said in a statement. “We are pleased to continue our relationship with Luzzatto and look forward to a very successful execution.”
The money is for the construction of The Depot, a planned 1.5-acre office campus with a roughly 107,000-square-foot building featuring high ceilings and 30-foot tall bays.
Plans call for three levels of outdoor space and a 225-space underground parking garage.
“The Luzzatto Co. 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 in a statement. “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 preleased by Luzzatto in the last three years.”
Culver City-based Sweetgreen Inc. has preleased Luzzatto Co.’s Exposition 3, a creative office project spanning roughly 94,000 square feet, also in West Adams. The site was formerly an industrial space, and Luzzatto Co. received $49 million in financing for the redevelopment project last year.
HIG Partners provided the three-year, floating rate construction loan for Exposition 3. JLL arranged the loan.
West Adams has been designated by the federal government as an opportunity zone. Developers and investors who build in these “economically distressed” areas are allowed defer capital gains taxes.
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