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$114M Mixed Use Refi at PDO

GlobeSt.com  |  Aug 19, 2013

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Meridian Arranges $114M for Mixed-Use Refi

By Natalie DolceLos Angeles
 

Playa del Oro is a flagship mixed-use property located in Playa del Rey, CA.

PLAYA DEL REY, CA-GlobeSt.com has exclusively learned that Meridian Capital Group LLC has negotiated the $114-million refinancing of Playa del Oro, a flagship mixed-use property located in Playa del Rey, CA, on behalf of Los Angeles-based Decron Properties Corp. The seven-year, fixed-rate loan was provided by a life insurance company and features an interest rate of 3.28% and highly favorable structural terms.

The new financing allowed Decron Properties to refinance a maturing construction loan on the property. Meridian managing director, Seth K. Grossman, who is based in the company’s Carlsbad, CA office and VP Jonathan Wintner, who is based in the company’s Los Angeles office negotiated the transaction. 

 

The loan moved from signed application to closing in less than five weeks, GlobeSt.com has learned. Playa del Oro, located at 8601 Lincoln Blvd. in Playa del Rey, CA, contains 405 apartment units and 27,705 square feet of on-grade retail. The asset is part of a larger, class-A master planned community developed by Decron Properties housing national tenants including an LA Fitness Signature Club and The Coffee Bean & Tea Leaf on the Playa del Oro site, and a Ralph’s grocery store as the anchor retail tenant at the adjacent parcel within the community.

“Despite interest rate volatility that has persisted since the beginning of the summer, this transaction was highly sought by lenders based on its leasing and operating strength, its stellar sponsorship and terrific location. Given the liquidity in the market for class-A new construction properties, Meridian obtained numerous competitive financing offers for five-, seven-, 10- and 15-year fixed-rate terms with an array of creative structural features,” Grossman says. 

Grossman and Wintner also advised Decron properties on the $67 million construction financing for Playa del Oro West in January 2013. “These two properties are adjacent to one another and upon completion of Playa del Oro West, Decron will own the largest class-A multifamily/master planned community in the entire Westchester and Playa del Rey area, spanning 14.5 contiguous acres and including 665 apartments and over 110,000 square feet of retail,” says David Nagel, president of Decron Properties.