Press Release (ePRNews.com) - BEVERLY HILLS, Calif. - Apr 10, 2017 - Quantum Capital Partners secured $33.5 million in permanent and construction financing on behalf of local real estate investment firm Robhana Group for a 60,000-square-foot medical office building and parking structure in Downtown Los Angeles.
Quantum Capital Partners’ Managing Partners Jonathan Hakakha and Mike Yim led the financing assignment and began marketing the opportunity to potential lenders more than a year ago, while the then speculative development was still in the planning stages.
“We accepted this construction assignment in early-2016 and immediately started introducing Robhana to several construction capital sources,” said Hakakha. “However, in mid-2016, the construction debt market started to shift due to newly enforced HVCRE regulations. Fortunately, our proactive approach with lenders to vet our sponsor early in the process allowed us to get ahead of the curve and move quickly when Robhana signed DaVita Healthcare Partners to a long-term lease for the entire building,” said Hakakha.
The new Healthcare Partners outpatient facility is being constructed on a 2.91 acre site at 1120 West Washington Boulevard near the US 10 and CA 110 interchange in downtown Los Angeles. Robhana acquired the development site in 2012 with financing arranged by Quantum.
In addition to the construction loan, the financing solution also included a permanent loan, which was secured by the fully occupied 50,000-square-foot building that sits adjacent to the new development. Recapitalizing an existing building where cash-out proceeds are used for new construction on the same parcel presented a huge challenge, according to Hakakha.
“Quantum has been actively placing debt across all major asset classes. For construction debt alone, over the last nine months, we have closed $82.5M and currently have $86M under application with another $116M coming to market. As construction financing continues to evolve, it’s important to have an experienced financial intermediary to help sponsors navigate the various new regulations,” added Hakakha. “We are pleased to have successfully tailored a financing package that allowed Robhana to execute their business plan.”
About Quantum Capital Partners
Quantum Capital Partners (http://www.quantumcp.com) is a leading mortgage banking firm that provides comprehensive real estate finance and advisory services across all major asset classes. We have more than $4 billion of debt and equity financing experience nationwide, working with a wide and diverse network of capital providers. Combined with our comprehensive knowledge of the capital markets that encompass the entire capital stack, Quantum repeatedly delivers expert advice and customized financing solutions on the most complex real estate transactions.