Los Angeles Retail Project Obtains $62M Refi
West Harbor represents a $500 million investment in this waterfront community.
Jerico Development and The Ratkovich Co., in a partnership with the city of Los Angeles and the Port of Los Angeles, have received a $61.5 million recapitalization to complete the West Harbor waterfront “eatertainment” retail destination. The project is located at 612 – 1422 S. Harbor Blvd., in the San Pedro neighborhood, near the Port of Los Angeles.
Oceanview Life and Annuity Co., an affiliate of Bayview Asset Management, is the lender. Scheduled to open in phases starting late 2025, West Harbor is currently 80 percent preleased.
Upon completion, the 42-acre area will feature high-end retail, entertainment and dining. Plans call for 117,205 square feet of leasable building space and 204,000 square feet of ground area, along with a 6,200-seat amphitheater. The development represents a $500 million investment into the waterfront community.
The city of Los Angeles and the Port of Los Angeles selected Jerico Development and The Ratkovich Co. through an RFP process. The development will also provide direct waterfront access, including 200,000 square feet of leasable waterside space designated for vessel excursions and other waterfront attractions.
Newmark advised the West Harbor team and arranged the recapitalization by providing an accretive capital solution for the project’s completion and stabilization.
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The refinancing, structured with a new senior loan and subordinate C-PACE financing, was arranged by Newmark Executive Vice Chairman Bill Fishel, Directors Alethia Halamandaris and Wyatt Strahan, and Associates Anna Sporrong and Broderick Flagg.
This full leverage, non-recourse refinancing of the West Harbor development will provide the time and resources required to bring the experiential retail project to fruition, Fishel told Commercial Property Executive.
Construction financing of this manner of leasehold real estate in any environment is challenging, he added. “The incredible outcome we achieved here belies the decade-plus of work by the Port of San Pedro and the Jerico and Ratkovich teams alongside the thoughtful, differentiated approaches of both Bayview and Petros, pairing existing PACE, bridge and new PACE financings to elegantly effectuate a new waterfront experience for the region.”
In one of South Florida’s largest office deals last year, Bayview Asset Management renewed its 55,071-square-foot office lease at Merrick Park, at 4425 Ponce de Leon Blvd. That deal was led by Colliers Vice Chair Stephen Rutchik and Vice President Tom Farmer, who represented landlord Brookfield Properties.
This week, a 146,901-square-foot grocery-anchored retail center in Los Angeles was financed for $32 million by 21 Alpha Group and Intelligent Design Real Estate through Forbright Bank for Crenshaw Plaza.
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