Pacific Equity Obtains $135M for Malibu Mixed-Use
Proceeds retire a construction loan from 2021.
Pacific Equity Properties has secured a $135 million first lien financing for Cross Creek Ranch, a 112,000-square-foot retail and office campus in Malibu, Calif. Torchlight Investors provided the five-year note that retires a $130 million construction loan from 2021. JLL secured the funds for the borrower.
Pacific Equity broke ground on the mixed-use project in 2021, after receiving the local authorities’ final approval the previous year. It was, at the time, the largest development to be approved since the city’s incorporation 30 years ago.
READ ALSO: Here Comes the Neighborhood: Mixed-Use Projects’ Bid to Fit In
Completed last year, Cross Creek Ranch comprises 71,605 square feet of retail and 50,719 square feet of creative office space across 10 one- and two-story buildings. The property also features a subterranean parking garage, outdoor seating and landscaped courts. Newmark is the leasing broker for the property’s retail component, while CBRE is spearheading office leasing, CommercialEdge data shows.
Located at 23465 Civic Center Way, in the core of Malibu’s shopping district, the 13-acre complex is close to Pacific Coast Highway and adjacent to the Santa Monica College Malibu Campus. The property is roughly 30 miles west of downtown Los Angeles and some 12 miles from the Santa Monica Pier.
Mixed-use development on the rise
Partner & Co-Head of Private Acquisitions Jon Stein led the Torchlight Investors team that provided the financing. JLL Senior Director John Marshall and Associate Spencer Seibring, along with Analysts Allie Black and Tim Donald, headed the Capital Markets Debt Advisory team that represented the borrower in the transaction.
As retail fundamentals were shaken by the pandemic, many of the Class B and C malls are being converted into mixed-use properties. A JLL analysis of 153 mall redevelopments in the U.S. shows that 46 percent represent this type of projects, incorporating at least three uses, the largest share of these being in California.
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