(EDITOR’S NOTE; According to public records, the property traded hands for $8.4 million, or about $190 per square foot.)
Los Angeles, CA – Calmwater Capital has provided Irvine-based West Hive Capital with $12.25 million in short-term first mortgage debt for the off-market acquisition and renovation of a 44,000-square-foot neighborhood retail property in Rancho Palos Verdes, CA.
The three-year, interest-only, non-recourse financing was secured by Western Plaza located at 29105-29229 S. Western Avenue at the intersection of Western and W. Capitol Drive. A portion of the loan proceeds will be used to fund an extensive renovation of the 1950’s vintage property, which had been owned by the seller for the past 60 years.
West Hive, a retail investment and development firm plans to demolish one of three existing buildings and in its place create a 3,000-square-foot retail outdoor patio that will serve as an important amenity for the center’s food and beverage tenants. Other improvements under the multi-million-dollar capital improvement plan include modernized storefronts and architectural facades, contemporary signage, new landscaping and resurfaced 119-space parking lot.
West Hive was introduced to the property in 2020 when its construction management arm, SCGWest was engaged by the seller to oversee the renovations and re-tenanting. With plans and entitlements completed, and a new tenant mix that includes The Habit, California Fish Grill, Urbane Café, and Mattress Firm, the seller offered West Hive the opportunity to acquire the asset off market.
“This is a highly trafficked infill location which draws from Rancho Palos Verdes, one of the most affluent communities in Southern California,” said Calmwater Director Zach Novatt who originated the financing. “Investors are drawn to the area for its steady market fundamentals and strong demographics. However, they have been discouraged by the high barriers to entry. This was an incredible opportunity for West Hive.”
“With their curated mix of new tenants and professional property management, we anticipate West Hive will exceed their original business plan and deliver an exciting retail center to the local community in short order,” added Calmwater Managing Principal Larry Grantham.
The financing was arranged by Michael Guterman of BWE.
Jason Ehrenpreis of CBM1 represented both parties in the acquisition and is the leasing broker for West Hive.
About Calmwater Capital
Calmwater Capital is a commercial real estate debt lender specializing in senior secured bridge and transitional loans. With offices in both Los Angeles and New York city metros, Calmwater provides certainty of execution and individualized attention to our borrowers nationwide. Founded in 2010, Calmwater has grown to attract institutional investors both domestically and internationally. Calmwater Capital has originated nearly $4 billion in loans across 234 transactions since 2010.
