BEVERLY HILLS, Calif., June 13, 2023 (GLOBE NEWSWIRE) -- Sonnenblick-Eichner Company has arranged a $27.4 million construction loan for the speculative development of a three-story 25,000-square-foot retail building on Third Street Promenade in Santa Monica. CA.
Located at 1404 - 1408 Third Street, the Class A building will provide approximately 50 feet of high- profile retail frontage along one of the most iconic High Streets in Southern California. One of the retail building’s more distinctive characteristics will be a 2,500 square-foot roof deck with unobstructed views of the Santa Monica Mountains and the Los Angeles Basin. The new construction replaces a 77-year-old mixed-used building that was razed last year by the developer, Blatteis & Schnur, Inc.
The non-recourse construction loan was priced at SOFR + 550 bps. and was funded by a private debt fund.
“Funding a speculative retail development in today’s environment is very challenging, however we were able to identify a lender who understood the unique location of this asset and the strength of the developer as well as their ability to execute on their business plan,” said Sonnenblick-Eichner Company Principal David Sonnenblick.
“There is no shortage of capital for quality real estate projects today,” added Patrick Brown, also a Principal of Sonnenblick-Eichner Company. “We have been successful in recently sourcing not only construction financing, but also interim and acquisition loans, as well as long-term fixed rate loans.”
Recognized internationally as one of California’s premier shopping destinations, the Third Street Promenade is a three-block, vehicle-free, open-air retail district with more than 200,000 square feet of retail, dining and entertainment venues. The property is on the most desirable street of the Promenade, less than one block from Santa Monica Place, a 475,000 square-foot, open-air mall anchored by Nordstrom and whose tenants include Tiffany & Company, Louis Vuitton, Tesla, The Cheesecake Factory and True Food Kitchen.
About Sonnenblick-Eichner Company
Sonnenblick-Eichner Company (www.sonneich.com) is a Beverly Hills-based real estate investment banking firm that specializes in arranging structured finance for acquisition, construction and permanent loans, interim and mezzanine financing as well as joint-venture equity transactions. The company is recognized for its expertise in marketing institutional real estate for sale and providing capital for all product types including hospitality, retail, office, industrial, and multifamily properties.
Source: Sonnenblick-Eichner Company
Media Contact: Bruce Beck
bruce@dbrpr.com
(805) 777-7971
(818) 540-8077
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/dbec0fc0-5b9c-422a-a4ee-03a830ede750
