LOS ANGELES--(BUSINESS WIRE)--Canyon Capital Realty Advisors LLC (Canyon Realty) and partner Hudson Pacific Properties, Inc. (Hudson) have committed to and funded the first tranche of a $140 million senior bridge loan to a joint venture between Waterbridge Capital and Jack Jangana. The loan will finance the acquisition and redevelopment of the Broadway Trade Center, a 1,080,000 square foot historic mixed-use office and retail building in the Broadway corridor of Downtown Los Angeles.
The bridge loan will be used to redevelop the property, originally built in 1908, including steps to maintain and restore historical elements of the building. Upon completion, the Broadway Trade Center will include large-plate creative office space as well as ground and second floor flagship retail spaces. The property’s unique large floor plates, which benefit from high ceilings and large, historic operable windows on three sides of the building, are expected to generate strong demand from potential tenants. The building will also offer future employees and tenants with convenient access to public transit, including the planned Downtown Streetcar, which will run directly in front of the property.
“We are pleased to provide the financing for this transformational project, which will continue the renaissance of the historic Broadway corridor, one of the most exciting emerging retail, entertainment and office hubs in Los Angeles,” said Charlie Rose, Director of Canyon Realty. “Canyon was founded in Los Angeles, is headquartered in Los Angeles, and has a distinct and longstanding interest in investing in emerging markets in our city, such as the Broadway Corridor.”
Located along a stretch of Broadway which has recently benefitted from substantial private investment, including the Ace Hotel and numerous new retailers such as Urban Outfitters, The Gap, and the acclaimed Alma restaurant, the Broadway Trade Center is another milestone in the historic area’s ongoing revitalization. The City of Los Angeles’ Bringing Back Broadway initiative is further evidence of this transformation.
“As a Los Angeles based office investor, we are pleased to invest alongside Canyon in this loan,” said Alex Vouvalides of Hudson. “We speak with creative office tenants on a daily basis, and with the influx of new residential developments and robust amenity base, the historic core of Downtown Los Angeles has become a desirable alternative for tenants.”
Canyon has been an active investor in Downtown Los Angeles for nearly two decades, having made several early investments in South Park (Transamerica Center, Elleven South Condominiums, and the WaterMarke Tower), Chinatown, and the Arts District (940 East Second, a historic adaptive re-use condominium projected delivered in 2011). Canyon is also the majority equity investor in One Santa Fe, a mixed use project designed by Michael Maltzan which will encompass 438 apartment units and 78,000 square feet of commercial space in the Downtown Los Angeles Arts District.
“Broadway Trade Center is indicative of Canyon’s larger interest in the Downtown Los Angeles resurgence,” said Rose. “We believe that Broadway’s time has finally come again and we are thrilled to play a part in that evolving story.”
“We are excited to work with Canyon Realty on this transaction. Their deep understanding of the local market and ability to quickly execute complex transactions was essential to us,” said Joel Schreiber, Chief Executive Officer of Waterbridge Capital. “We look forward to continuing our relationship in the future.”
About Canyon Capital Realty Advisors LLC
Canyon Capital Realty Advisors LLC (http://www.canyoncapitalrealtyadvisors.com/) is the real estate direct investing arm of Canyon Partners, LLC. Founded in 1990, Canyon Partners and its affiliates are investment management firms and registered investment advisors headquartered in Los Angeles, with approximately $24 billion in assets under management.
Canyon Realty funds focus on providing value-added debt and equity capital to real estate owners, operators, developers, mortgage lenders and corporations involved in time-sensitive and complicated projects, as well as on markets and transactions that are often overlooked, misperceived and difficult to underwrite. Since its formation, Canyon Realty has completed over $4.7 billion of investments involving commercial real estate and mortgage assets with a total value of over $12.9 billion.
About Hudson Pacific Properties
Hudson Pacific Properties, Inc. is a full-service, vertically integrated real estate company focused on owning, operating and acquiring high-quality office properties and state-of-the-art media and entertainment properties in select growth markets primarily in the Pacific Northwest and Northern and Southern California.
The Company's strategic investment program targets high barrier-to-entry in-fill locations with favorable long-term supply-demand characteristics in select target markets, including Los Angeles, San Francisco and Seattle. The Company's portfolio currently consists of approximately 6.3 million square feet, not including undeveloped land that the Company believes can support an additional 1.8 million square feet. The Company has elected to be taxed as a real estate investment trust, or REIT, for federal income tax purposes. Hudson Pacific Properties is a component of the Russell 2000® and the Russell 3000® indices.