Real Estate
The Sunset Secures $78M Refinancing Deal
The loan services existing debt on the 178,000-square-foot building on Sunset Boulevard.
The owner of a large mixed-use commercial building on Sunset Boulevard in West Hollywood has obtained a $78 million loan to refiance existing debt on the property, according to Commercial Property Executive magazine.
The Sunset is a massive retail and office complex just west of La Cienega Boulevard. Its array of retail tenants includes clothing stores, beauty salons, gyms and restaurants.
Broadreach Capital Partners acquired the building in 2007 and secured the loan from AIG Asset Management Group.
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Commercial Property Executive reports:
The Sunset might have been developed 50 years ago but, as is hardly uncommon in Hollywood, it has benefited from a complete makeover. In 2001 the property at 8560-8580 Sunset Blvd., then known as Sunset Millennium, underwent a transformation with the full redevelopment of its 71,100-square-foot office building, followed in 2002 by the addition of a 106,800-square-foot retail and office plaza and a 937-space parking facility. And just months after Broadreach completed the approximately $100 million acquisition of the multi-structure complex from Apollo Real Estate Advisors in early 2007, the real estate private equity firm further upgraded the complex through a renovation and repositioning program.
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AIG Asset Management Group provided the financing, which came in the form of a three-year, floating-rate loan with the option for two one-year extensions. It wasn’t exactly a big risk. The Sunset is presently 95 percent occupied, and the West Hollywood market is one of the strongest in Los Angeles County. At mid-year, the office vacancy was 6.6 percent, according to statistics from commercial real estate information and analytic services provider CoStar, and in the third quarter the total retail vacancy was just 4.2 percent.
Century City-based HFF, a commercial real estate and capital markets services provider, brokered the refinancing deal.
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