Hermosa Beach, CA Sonnenblick-Eichner Co. has secured $22 million of interim first-mortgage financing for the Shops at the Pier, on the beachfront, The Strand. The property is owned by a joint venture comprised of Provenance Hotels and Bolour Associates.
The Shops at the Pier is a mixed-use project, which includes 18,192 s/f of fully leased retail space and nine apartment units.
Hermosa Beach is an affluent beach community in Southern California, which attracts millions of visitors throughout the year. The city plays host to a variety of national and international lifestyle sporting events and is home to Fiesta Hermosa, Southern California’s largest Arts and Crafts fair.
Loan proceeds are being used to refinance existing debt and fund costs associated with a planned redevelopment of the 40,000 s/f site into a 100-room, luxury boutique hotel.
“With the debt yield being less than 5%, we were able to arrange attractive interim financing from a private debt fund by demonstrating the intrinsic value associated with the Sponsor’s planned hotel on one of the last remaining beachfront parcels in Los Angeles’ South Bay,” said David Sonnenblick, principal of Sonnenblick-Eichner Co.
“Given the excellent sponsorship and location, we were able to attract multiple competitive financing quotes. Our client ultimately chose a lender with the most flexibility within the loan structure to accommodate their business plan, which includes completing the entitlement process for the hotel development,” said Elliot Eichner, also a principal of Sonnenblick-Eichner Co.