Luzzatto scores $49M construction loan for Sweetgreen HQ in West Adams
HIG Realty Partners provided the financing
The Luzzatto Company secured $48.7 million in construction financing for its Exposition 3 office complex in West Adams, set to be the future headquarters of fast food chain Sweetgreen.
HIG Realty Partners provided the loan and JLL arranged the financing, according to the Commercial Observer. It’s a three-year loan with a floating interest rate.
Luzzatto expects to complete the 94,100-square-foot office at 3101 West Exposition Boulevard in 2022. The firm closed on the property last July for $14.8 million, two months after signing Sweetgreen to a lease for the future office development. Luzzatto previously borrowed $37.2 million in bridge financing from TerraCotta Group.
Sweetgreen is headquartered at Runyon Group’s Platform complex in nearby Culver City.
Luzzatto has billed itself as a pioneering investor in West Adams, which neighbors Culver City and is emerging as a cheaper alternative for startups and smaller businesses looking to put down roots in the area.
Exposition 3 is part of a larger office campus Luzzatto wants to build in the area. The firm owns six adjacent properties for the larger development.
Last year Luzzatto secured $30 million in financing for a 56,000-square-foot office conversion at 3339 West Exposition Place dubbed Exposition 2. That development is fully leased to online sneaker marketplace GOAT.
HIG Realty Partners is the real estate investment wing of Miami-based investment firm HIG Capital, which has about $40 billion of equity capital under management. The firm has invested in $5 billion worth of real estate. [Commercial Observer] — Dennis Lynch