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.
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.