Deutsche Bank and Greenbridge Finance have co-originated a $150 million loan to refinance debt on The Reef, a multi-use creative center in downtown Los Angeles.
For the Greenbridge Investment Partners subsidiary, the July 20 deal marked its largest loan in the Beverly Hills-based private finance company’s history specializing in direct lending on bridge and fixed-rate financing for CRE acquisitions and recapitalizations.
Greenbridge said its platform focuses on acquiring and repositioning underperforming assets across all sectors. Sean Hashem, principal at Greenbridge Investment Partners and Greenbridge Finance, said the firm applies a similar investment philosophy to its property portfolio and loan book.
“Knowing long-term market trends and fundamentals are always essential considerations, but we look beyond the numbers. We spend time understanding an asset’s potential, learning the needs of its tenants and projecting future profits for both,” Hashem said. “We immerse ourselves in the local neighborhood and often observe community virtues or friction that impact an asset’s ultimate success.”
Hashem said looking at The Reef, a 12-floor, 800,000-square-foot multi-use hub at 1933 South Broadway in Los Angeles, showed the asset’s long-term viability as a business and a borrower. The space is marketed as a “creative habitat” for creators, innovators and entrepreneurs.
At present, the asset’s long-term tenants and short-term renters of the event space include fashion, technology, media, design and trade show producers. “Los Angeles is the global epicenter of creativity and there is a steady pipeline of demand for space to work. The building’s design and location make it an ideal location to launch and grow creative businesses,” Hashem said.
Independent of Deutsche, Greenbridge said it offers non-recourse loans ranging from $5 million to $200 million with loan-to-value and loan-to-cost ratios of up to 85 percent on all property types. Greenbridge has loan capabilities across the senior, B-note, mezzanine and preferred equity realms.