Charles Co. secures $215M refi for retail portfolio

Argentic provided the loan for 14 properties around SoCal
June 03, 2019 08:00AM

Arman Gabay and The Springs shopping center in Palm Springs, part of the 14-property portfolio

Arman Gabay and The Springs shopping center in Palm Springs, part of the 14-property portfolio

Arman and Mark Gabay’s development firm Charles Company secured a big refinancing on a portfolio of nearly fully-leased retail properties throughout Southern California.

Argentic Real Estate Finance — which recently changed its name from Silverpeak — provided the $215-million debt package, which will pay off existing loans on the 14 properties, and cash out $15.2 million in equity, Commercial Observer reported. The 4-percent fixed-rate loan has a 10-year term.

Nine of the properties are fully leased, and overall the portfolio is 98-percent leased. Last year, the portfolio earned $25.8 million in rental income.

The properties are spread around the region, including a nearly 400,000-square-foot shopping center in Palm Springs, and a Target-anchored mall in Long Beach.

West Hollywood-based Charles Company owns more than 100 commercial assets with more than 4 million square feet of space in California and Nevada. Last year, Arman Gabay was charged for allegedly bribing an L.A. County official to secure a government lease. He pleaded not guilty.

Earlier this month, the firm began marketing a ground lease for a 6.5-acre site in South L.A., after almost 10 years of planning a mixed-use project there. The firm is also moving forward with plans to build a hotel tower on the Sunset Strip with 237 rooms. [CO]Gregory Cornfield