Starwood provides $213M loan for redevelopment of Museum Building in DTLA

Its owners are planning a major overhaul of the 1912-built property

Broadway Trade Center and Barry Sternlicht
Broadway Trade Center and Barry Sternlicht

Starwood Property Trust has lent $213 million for the redevelopment of the century-old Museum Building in Downtown Los Angeles.

The loan will go to Waterbridge Capital and Continental Equities, the property’s owners, who have been seeking $500 million in floating-rate financing since March.

The 18-month loan from Starwood, an affiliate of Starwood Capital Group, acts as an bridge loan and recapitalizes an earlier $165 million predevelopment loan from Jamestown, the Commercial Observer reported. The joint venture is still looking to close a $300 million construction loan on the property over the next few months.

James Millon, Tom Traynor and Jesse Zarouk of CBRE Capital Markets arranged the financing.

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Located at 801 S. Broadway, the 1.1 million-square-foot landmarked building was formerly used to house the May Company department store.

Its owners are looking to convert the property, built in 1912, into a mixed-use site, which would include over 350,000 square feet of office space, 400,000 square feet of retail and a 117,000-square-foot hotel. A rooftop restaurant and swimming pool are also in the works.

Waterbridge, led by Joel Schreiber, and Continental acquired the property in 2014 for $130 million. [CO] — Natalie Hoberman