The money replaced existing debt and will fund future expenses including tenant improvements and leasing costs.
The center has been a historic-cultural monument since 1988.
The loan was provided by New York-based Ladder Capital Corp. and arranged by Century City-based George Smith Partners Inc.
“Chapman Plaza is a cultural anchor to this community, and we are proud of our work with tenants during a difficult time,” Quincy Allen, managing partner at Arc Capital Partners, said in a statement. “It has been a true team effort to push this financing over the finish line.”
Built in 1928, Chapman Plaza was home to the world’s first drive-thru grocery store, according to George Smith Partners.
The center was renovated in 2017, with the entryway and common areas getting upgrades at the time. Arc Capital Partners said the center has been doing well.
“Koreatown, at approximately 3 square miles, is one of the most diverse neighborhoods in the country,” Neville Rhone, a managing partner at Arc Capital Partners, said in a statement. “With its central location and unique experience, Chapman Plaza continues to draw those who seek authentic food and vibrant nightlife in an open-air setting.”
George Smith’s Malcolm Davies, Zack Streit, Drew Sandler, Alexander Rossinsky, Aiden Moran, Brandon Asherian and Ben Tracy found the lender for the property.
“The project is well positioned to meet the pent-up demand for unique experiences post-pandemic,” Streit said in a statement.
Arc Capital Partners, meanwhile, is growing. The company, with investor partners, is looking at investing in more than $1 billion worth of real estate in California and Texas.
Chapman Plaza Secures $26 Million Loan