Greenberg Glusker Negotiates Construction Loan For 50,000 SF Medical Building In Santa Monica
Sixteenth Street Medical Center LP has closed on a $28.7 million construction loan from US Bank, and will begin immediately on the development of a three-story 50,000 square-foot medical building in Santa Monica, California.
The financing, which was negotiated on behalf of the borrower by attorney Brian Kang of Los Angeles-based law firm Greenberg Glusker, allows the development team, led by Randall Miller of The Nautilus Group, Inc. to move forward on the build-to-suit for UCLA. UCLA signed a long-term lease in February to occupy the entire building, which will be used as an outpatient surgery facility.
The variable-rate short-term loan arranged by George Smith Partners starts at 5.25 percent and is keyed to LIBOR. The borrower will seek permanent financing once the building is completed, according to Kang.
“As expected in this economic climate, lenders are taking a much more conservative underwriting approach when making real estate loans, especially construction loans,” said Kang. “However, U.S. Bank’s financing of this project shows that sophisticated lenders are still willing to make sizable lending commitments at reasonable rates and terms for quality projects that make economic sense.”
The building is located at 1223 16th Street across the street from the Santa Monica-UCLA Medical Center and Orthopedic Hospital. The Michael W. Folonis, Architects-designed facility will be built adhering to the U.S. Green Building Council’s LEED standards and is expected to obtain Gold certification upon completion.