The Los Angeles-based developer The Ratkovich Company, National Real Estate Advisors and Blue Vista Capital have secured a $225 million permanent loan to finance the renovation of The Bloc, a 1.8 million sq ft mixed-use asset in downtown Los Angeles, California.
The new loan replaces an existing, approximately $121.6 million CMBS loan assumed in 2013 when the group purchased the 33-story retail, hospitality and office complex for a reported $241 million, and it provides for additional proceeds to finalize the redevelopment and fund leasing costs at the property
The ownership group worked with an undisclosed institutional balance sheet lender on the financing. HFF, which arranged the deal, and a spokesperson for the developers declined to name the lender.
“The added flexibility provided by this investment will help us to continue realizing our goal of providing Angelenos with a truly transformational community cornerstone at The Bloc,” said Wayne Ratkovich, CEO of The Ratkovich Company, in the statement.
The ownership group announced a $160 million renovation to the existing structures when the partners purchased the property in 2013.
The Bloc will open this summer following a revamp of the 1970s-style retail, hospitality and office property at the intersection of 7th and Flower Streets. Anchored by a renovated Macy’s, The Bloc will offer artisanal retailers and restaurants, as well as an office building and renovated 496-room Sheraton Los Angeles Downtown.
Originally built in 1973 by architect Charles Luckman, it will become the single largest mixed-use property in Los Angeles, according to the developer.
National Real Estate Advisors has $2.6 billion in net assets under management invested in commercial and multifamily real estate as of December 31, 2015.
The Ratkovich Company is a Los Angeles development company that engages in both new development and the imaginative reuse of existing buildings. The company has completed, or has under development, nearly 18 million sq ft of commercial space in Los Angeles County.
Blue Vista Capital is headquartered in Chicago and manages four closed-end funds, two separate accounts and one joint venture relationship with approximately $5.25 billion of assets under management.