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California Landmark scores $85M refi on LA apartments

Mesa West Capital provided loan on Hollywood, Brentwood properties totaling 157 units

Ken Kahan, chief executive officer, California Landmark Group in front of 7928 Hollywood Boulevard (left) and 1168 South Barrington Avenue (right) (Getty Images, Realtor.com, iStock/Photo Illustration by Steven Dilakian for The Real Deal)
Ken Kahan, chief executive officer, California Landmark Group in front of 7928 Hollywood Boulevard (left) and 1168 South Barrington Avenue (right) (Getty Images, Realtor.com, iStock/Photo Illustration by Steven Dilakian for The Real Deal)

California Landmark Group has scored nearly $85 million to refinance a pair of apartment complexes on the Westside.

The Los Angeles-based developer received the loan from Mesa West Capital for a 78-unit complex in Brentwood and a 79-unit complex in Hollywood, Mesa West said Monday.

Terms of the loan were not disclosed, but records show Mesa West provided a $41.75 million loan for the Hollywood property, which is located near Laurel Canyon at 7928 Hollywood Boulevard. The complex includes one-, two- and three-bedroom units, with asking rents ranging from $3,099 for a one-bedroom to $4,750 for a three-bedroom, according to online listings.

The locally based lender, which is owned by Morgan Stanley, also gave $43 million to the Brentwood complex at 1168 South Barrington Avenue. That property offers one- to three-bedroom apartments, with amenities including a rooftop lounge. Asking rents at the complex range from $3,950 for a one-bedroom to $4,799 for a two-bedroom penthouse.

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“The bulk of the multifamily inventory in these submarkets are older product,” making California Landmark’s complexes more attractive to renters, Mesa West’s Josh Westerberg said in a statement.

Mesa West provided the financing through its fifth income fund, which had a $1 billion fundraising target when it launched in July 2020.

The lender has extended a significant amount of financing on multifamily assets in recent months. Last week, Mesa West said it provided SRM Development $67 million to refinance a 199-unit senior housing property in Milpitas. Outside of California, Mesa West recently lent $97.7 million in acquisition financing for two multifamily properties in Raleigh.

The complexes in Hollywood and Brentwood make up part of California Landmark’s 2,000-unit portfolio across Southern California.

The developer bought the land for the complexes for $16.7 million in 2011, records show, and completed construction in 2014. The company also has projects in Koreatown, Marina Del Rey and Larchmont Village, according to its website.

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