SAN FRANCISCO – February 27, 2017 – CBRE Capital Markets’ Debt & Structured Finance team has secured $89.2 million in balance sheet bank financing for the acquisition of The West LA Creative Portfolio, a three-building, 215,261-square-foot, Class A creative office portfolio located in Playa Vista and Malibu—two of the most dynamic submarkets in West Los Angeles.
CBRE arranged the five-year, non-recourse, low-leverage, floating-rate acquisition financing at a very competitive spread priced over 30-day LIBOR. The financing was provided by a life company whom is actively seeking exposure to core markets with well-heeled commercial real estate investors.
Brad Zampa, Mike Walker, and Megan Woodring of CBRE’s San Francisco office arranged the financing on behalf of the borrower, a joint venture between LaSalle Investment Management and Pacshore Partners.
“Over the past twenty-four months we have been pleasantly surprised by a number of traditional Life Companies entering the bridge financing space for core-plus and value-add opportunities which are generally executed by domestic banks and debt funds,” shared Brad Zampa, executive vice president, Debt and Structured Finance, CBRE Capital Markets. “Certain life companies are using their balance sheets to fill both the pricing and leverage gap that exists between banks and debt funds which is creating more lender competition and therefore more choices when completing the capital stack.”
Located in the highly sought after West Los Angeles submarkets, these Class A core assets benefit from substantial recent improvements, a combination of existing long-term tenancy with a seven-year remaining weighted average lease term across the portfolio. Currently undergoing renovation in Malibu, The Enclave offers expansive ocean views and is easily accessible and ideally located for residents in Westlake Village/Thousand Oaks and Pacific Palisades.
Playa Vista has become one of the most desirable office markets and a hub for some of the biggest technology and media tenants in the world. The two buildings located in Playa Vista which have recently undergone significant cosmetic upgrades include 12901 West Jefferson Blvd. which is a Class A, single tenant build-to-suit building, and The Annex, 5340 Alla Rd., a Class A multi-tenant creative office building. Situated on the north side of the Pacific Coast Highway in eastern Malibu, The Enclave, will become a Class A creative space that will be highly attractive to today’s innovative tenant base.
About LaSalle Investment Management
LaSalle Investment Management is one of the world’s leading real estate investment managers with approximately $60 billion of private and public equity and private debt investments under management as of Q3 2016. LaSalle’s diverse client base includes public and private pension funds, insurance companies, governments, corporations, endowments and private individuals from across the globe. LaSalle sponsors a complete range of investment vehicles including separate accounts, open- and closed-end funds, public securities and entity-level investments. LaSalle is a wholly-owned, operationally independent subsidiary of Jones Lang LaSalle Incorporated (NYSE: JLL), one of the world’s largest real estate companies. For more information, please visit www.lasalle.com.
About Pacshore Partners
Pacshore Partners is a Los Angeles based real estate firm. Founded in 2012 by industry veteran Philip J. Orosco, Pacshore is currently re-developing a Los Angeles portfolio of premium commercial office and mixed-use properties with institutional joint venture partners. Since its inception, Pacshore has acquired over $400 million in assets with a particular focus on unique workplace environments. Pacshore Partners and its affiliates actively manage properties throughout the Western U.S. on behalf of institutional clients. The firm applies institutional best practices in property management, accounting, financial reporting, and strategic planning in order to optimize and preserve asset value.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2016 revenue). The company has more tha Linkn 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.