Developers of a mile-long West Harbor shopping and dining destination along the San Pedro waterfront have broken ground after securing $90 million in financing.
The Ratkovich Company and Jerico Development began the 42-acre redevelopment project last month after closing on the construction loans, the Commercial Observer reported.
The loans include $55 million in Commercial Property Assessed Clean Energy (C-PACE) financing from Petros PACE Finance, based in Austin,Texas. Also, Parkview Financial, based in Brentwood, provided a $35 million senior construction loan.
C-PACE is a government mechanism that allows owners to finance energy efficiency and renewable energy upgrades.
The new financing adds to $65 million secured through Osprey Investors, based in Sacramento. West Harbor has a 66-year ground lease from the City of Los Angeles and the Port of Los Angeles, which spent $100 million for infrastructure.
The 300,000-square-foot West Harbor, which replaces the former Ports O’ Call Village, is designed to put the “water” back into the San Pedro waterfront, according to its developers.
Plans call for indoor and outdoor dining, an overwater bar and water features such as harbor cruises, whale watching and sport fishing excursions, with a 1,200-foot dock for private boats.
The harbor development will include more than 150,000 square feet of shops and restaurants, a market hall, an artisan craft brewery, plus 4 acres of parks and a 6,200-seat amphitheater for live entertainment and events.
Confirmed tenants include Hopscotch, Poppy + Rose, Sugar Factory, Jay Bird’s Chicken, King & Queen Cantina and Pitfire Pizza.
Mike Hess Brewing will run a brewhouse and a 20,000-square-foot beer garden. Hollywood mainstay Yamashiro will open its second location with a 3,000-square-foot patio.
West Harbor’s use of C-PACE financing allowed it to secure funding for the up-front costs of energy- and water-efficient new construction and improvements with more favorable terms than are available via conventional financing.
That resulted in what’s known as a “blended interest rate,” substantially less than what would be expected for a large retail and restaurant project using traditional senior and mezzanine debt, according to the Commercial Observer.
The West Harbor development is expected to be completed in 2024.
The Ratkovich Company, based in Downtown Los Angeles, is the lead developer; Jerico Development is based in San Pedro.
Ratkovich’s adaptive reuse projects include renovating Downtown’s iconic Art Deco Oviatt Building, The Wiltern theater on Wilshire Boulevard and Chapman Market in Koreatown. Jerico Development has overseen the adaptive reuse and commercial revival of several Long Beach and other harbor-area properties.
— Dana Bartholomew
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