Universal Lofts has refinanced $36.7 million in senior debt through a $32 million senior loan from East West Bank and a $5.25 million mezzanine from a Pembrook Capital Management fund, a source with knowledge of the deal told Private Debt Investor.
The Los Angeles 67 unit live/work complex was constructed in 2008 and is 95 percent occupied by renters, according to a Pembrook press release on the deal. Pembrook’s mezzanine financing will go towards the property’s recapitalisation and sale of condominiums.
“We continue to tap into the demand for mezzanine financing on a very selective basis,” said Pembrook president and chief executive officer Stuart Boesky in a statement. “This investment in Universal Lofts offers the opportunity to finance a successful project developed by an experienced sponsor within a high-demand, high-barrier submarket of Los Angeles. “
East West Bank could not be reached for comment. Pembrook declined to comment beyond its release.
Boesky founded Pembrook in 2006. The firm invests in commercial real estate to finance first mortgages, mezzanine, bridge loans and commercial mortgage-backed securities, according to its website. The firm has participated more than 50 investments totaling approximately $600 million since inception.
The firm closed its second investors fund on $154 million in April. Limited partners included national, regional and community banks as well as public pensions, according to a statement that announced the close.