The Davies Group at Los Angeles-based George Smith Partners, an entrepreneurial commercial real estate capital advisory firm, arranged $25.5 million in senior bridge financing provided by New York-based Ladder Capital (NYSE: LADR) on behalf of Los Angeles-based Arc Capital Partners (“Arc”) for Chapman Plaza. The 43,000-square-foot retail center destination dining and retail hub, located in the heart of Los Angeles’ Koreatown, features Baroque Revival architecture that cannot be replicated and has been recognized as an official cultural monument since 1988.
“Chapman Plaza is a cultural anchor to this community, and we are proud of our work with tenants during a difficult time,” said Arc’s Managing Partner Quincy Allen. “It has been a true team effort to push this financing over the finish line, and we are excited to see the tenants grow and succeed through the recovery.”
The illustrious Chapman was constructed in 1928 – making history as the world’s first drive-through grocery store. In 2017, the property underwent a major renovation program that included upgrades to the entryways and common areas, allowing the sponsorship to establish a higher-quality tenant base. Chapman Plaza is an iconic destination in Los Angeles offering culturally diverse dining options. It is specifically known for its Korean BBQ, authentic Asian desserts and vibrant nightlife scene.
Led by Principal and Managing Director Malcolm Davies and Senior Vice President Zack Streit at George Smith Partners, the Davies Group identified a lender that understood the significance of the asset and the long-term viability of the business model, despite market volatility and COVID-19 related challenges in the retail sector during 2020.
“We thoroughly enjoyed the opportunity to work with a best-in-class sponsor, Managing Director Jeffrey Giudice and the rest of the Ladder Capital team,” said Streit. “The project is well positioned to meet the pent-up demand for unique experiences post-pandemic.”
“Koreatown, at approximately three square miles, is one of the most diverse neighborhoods in the country,” said Managing Partner Neville Rhone at Arc. “With its central location and unique experience, Chapman Plaza continues to draw those who seek authentic food and vibrant nightlife in an open-air setting.”
Davies and Streit, along with other Davies Group members, Senior Vice Presidents Drew Sandler and Alexander Rossinsky; Vice President Aiden Moran; Assistant Vice President Brandon Asherian; and Analyst Ben Tracy sourced the financing on behalf of Arc.
About Arc Capital Partners
Arc Capital Partners (“Arc”) is a minority-owned, real estate owner-investor dedicated to redefining urban mixed-use environments. In partnership with large institutional investors, Arc is currently pursuing over $1 billion of urban real estate located primarily in California and Texas. Through the lens of diversity and inclusion, Arc targets middle-market investments ($40 million to $100 million) that typically exhibit value-add and opportunistic business plans. For more information, please see www.arccapitalpartners.com
About Ladder Capital
Ladder Capital Corp (NYSE: LADR) is an internally managed real estate investment trust that is a leader in commercial real estate finance. With over $5.4 billion of assets on its balance sheet, Ladder originates and invests in a diverse portfolio of commercial real estate and real estate-related assets, focusing on senior secured assets. Ladder’s investment activities include: (i) direct origination of commercial real estate first mortgage loans; (ii) investments in investment grade securities secured by first mortgage loans on commercial real estate; and (iii) investments in net leased and other commercial real estate equity. Founded in 2008, Ladder is run by a highly experienced management team with extensive expertise in all aspects of the commercial real estate industry, including origination, credit, underwriting, structuring, capital markets and asset management. Led by Brian Harris, the Company’s Chief Executive Officer, Ladder is headquartered in New York City.
About George Smith Partners
George Smith Partners is a leading national provider of capital market advisory services to the commercial real estate industry. The firm specializes in arranging financing for commercial and multifamily properties, including acquisition, construction, bridge and permanent loans, as well as mezzanine loans, highly leveraged participating loans and joint venture equity. The company has arranged more than $58 billion in financing since its inception. Additional information about George Smith Partners is available at www.GSPartners.com.