By Keith Loria, Contributing Editor
Los Angeles—The Runyon Group has received a 10-year, non-recourse $47 million mortgage to refinance Platform, a 75,000-square-foot, transit oriented, mixed-use project in the Hayden Tract district of Culver City, Calif.
Quantum Capital Partners arranged the financing with Wells Fargo. Runyon Group will use the proceeds from the financing to retire construction debt and equity on the project, which was completed in late 2016.
“Runyon initially tasked us to find them a low-cost floating-rate bridge loan to take out their construction debt and equity,” Mike Yim, Quantum’s managing director, said in a prepared release. “While marketing the property to our deep network of capital sources, we discovered that there was an appetite from multiple permanent debt lenders for Platform despite the lack of operating history.”
The Platform consists of six buildings across 2 acres and consists of about 40,000 rentable square feet of creative office along with 35,000 rentable square feet of retail and restaurant space.
The 35,152-square-foot office component is 100 percent leased and is the creative headquarters of Reformation, SoulCycle, digital advertising firm Criteo and restaurant company Sweetgreen.
“Due to the unique quality of this asset and the successful track record of the sponsor, there was a tremendous amount of interest from lenders, which gave Runyon multiple financing solutions from which to choose,” Jonathan Hakakha, Quantum’s managing director, said. “This financing allowed Runyon to secure maximum permanent loan proceeds at today’s attractive rates before the property reached stabilization.”
A retail component of the property is currently 98 percent leased to a complimentary mix of high-end regional and international specialty shops, fashion boutiques and eateries. The tenant roster includes Reformation, Magasin, SoulCycle and a collaboration between Curve and internationally lauded British designer Tom Dixon called The Shop. Food and beverage providers include Loqui, Blue Bottle Coffee, Van Leeuwen, Sweetgreen and The Cannibal.
Platform is the reimagining of a 4-acre 1960s Los Angeles auto dealership adjacent to the Culver City station of Metro’s new Expo Light Rail line, which runs from downtown Los Angeles to the beach in Santa Monica.
Quantum has secured more than $100 million of capital for Runyon’s various commercial real estate assets.