NEW YORK, Sept. 13, 2021 (GLOBE NEWSWIRE) -- Madison Realty Capital, a vertically integrated real estate private equity firm focused on debt and equity investment strategies, today announced it has provided a $79.1 million loan to Vella Group, a Los Angeles-based national development firm focused on creative spaces, hotels, and high-end retail shops, collateralized by four light industrial and flexible office properties and one undeveloped site in Hawthorne and Carson, California. The loan will be used to refinance the portfolio, pay closing costs, fund leasing costs, and begin construction of the development site.
“Through our longtime relationship with the Vella Group, which spans more than a decade, Madison was able to complete due diligence and deliver a customized financing solution to support an attractive portfolio of assets in two weeks,” Josh Zegen, Managing Principal and Co-Founder of Madison Realty Capital. “This transaction is testament to our team’s ability provide a highly complex, hybrid loan on an accelerated timetable and execute projects throughout all stages of the development lifecycle. We are pleased to support Zach Vella and his highly experienced team as we continue to identify attractive opportunities for our investors and partners throughout California.”
“Vella Group has a long history of working with Josh, and we knew his team had the expertise to move quickly and efficiently, which made Madison Realty Capital the right choice for this project,” said Zach Vella, principal of Vella Group. “We appreciate Madison’s know-how and flexibility in completing this transaction in just two weeks and look forward to continuing to work together.”
The four existing properties situated in Carson and Hawthorne, with a combined 206,333 rentable square feet, are 95% leased, benefit from easy access to Los Angeles’ major highways, significant housing stock for corporate employees, and affordable rents relative to Los Angeles’ premier waterfront submarkets (West LA, Marina Del Ray, and El Segundo). Details on the properties are as follows:
- 1010 Sandhill Avenue in Carson is a light industrial complex leased to Chanje Energy, a California-based innovation company delivering ground-up electric truck and turnkey energy infrastructure solutions for the commercial last mile industry.
- In Hawthorne, 12536 Chadron Avenue is a flexible and light industrial building leased to Venturi Astrolab, Inc., an aerospace manufacturing and engineering firm founded by former SpaceX executives.
- 13100 Yukon Avenue in Hawthorne is a flexible and creative industrial complex leased to Nerd Street Gamers, a national network of e-sports facilities and events, Mynaric Inc., a wireless laser communications developer for aerospace networks and For-Days, Inc., a sustainable clothing manufacturer and online retailer.
- 13040 Cerise Avenue in Hawthorne is a one-story art complex leased to a variety of artists and musicians.
- The developable site, located at 13007 Yukon Avenue in Hawthorne, is slated for 49,500 rentable square feet of creative and light industrial space and is scheduled to be complete in late 2023.
About Madison Realty Capital
Madison Realty Capital is a vertically integrated real estate private equity firm that manages approximately $6 billion in total assets on behalf of an institutional global investor base. Since 2004, Madison Realty Capital has completed more than $15 billion in transactions in the U.S. providing reputable borrowers with flexible and highly customized financing solutions, strong underwriting capabilities, and certainty of execution. Headquartered in New York City, with offices in Los Angeles and Miami, the firm has over 60 employees across all real estate investment, development, and property management disciplines. Madison Realty Capital has been frequently named to the Commercial Observer’s prestigious “Power 100” list of New York City real estate players and is consistently cited as a top construction lender, among other industry recognitions. To learn more, follow us on LinkedIn and visit www.madisonrealtycapital.com.
