December 3, 2019– Sonnenblick-Eichner Company has secured $17.5 million of 10-year, fixed rate, non-recourse financing for the Brentwood Town Center, a 12,845-square-foot boutique, High Street retail shopping center located on San Vincente Boulevard in Los Angeles’ Brentwood neighborhood. The interest-only loan was placed with a Wall Street investment bank and was priced at 3.25% equating to a loan of more than $1,350 per square foot.
Brentwood Town Center is located at the intersection of San Vicente Boulevard and 26th Street, in Brentwood, one of west Los Angeles’ most affluent communities. Brentwood boasts a median household income of more than $120,000. The San Vicente Boulevard corridor is widely recognized as having some of Los Angeles’ finest restaurants and retail stores.
Brentwood Town Center is a two-story luxury destination retail center with subterranean parking for 89 cars. The property is leased to a variety of high-end retailers, eateries and fitness outlets including Blue Bottle Coffee, Le Pain Quotidien, Blush LA, PlateFit, Bar Method, Nagao Sushi and Pressed Juicery.
The property is owned and managed by affiliates of Blatteis & Schnur, a Los Angeles-based owner and operator of High Street retail assets. The sponsor also developed the adjacent Brentwood Place shopping center, which is 100 percent leased to contemporary fashion boutique Theory. Sonnenblick-Eichner Company arranged the construction and permanent loans for this property as well.
“Being in an extremely attractive interest rate environment, we decided to take a targeted approach in our marketing efforts,” said Sonnenblick-Eichner Company Principal David Sonnenblick. “We approached a select number of potential capital providers in order to expedite the process for concerns of interest rates running away from us. Our client’s interest was in long-term, fixed-rate financing at a rate that would pay for the prepayment penalty of the existing loan over the first few years of the new financing. The savings realized from a 3.25% interest-only loan accomplished this for our client.”
“A CMBS structure provided the best execution for our client, since life insurance companies are imposing floor rates higher than what we were able to achieve from the CMBS market,” added Sonnenblick-Eichner Company Principal Patrick Brown.