The new, $28 million non-recourse financing was provided by a direct private lender specializing in ground-up commercial and residential real estate financing.
The 4.7-acre redevelopment site currently consists of a three-story, 128,586-sq.-ft. Class B multi-tenant office building and 457 surface and structured parking spaces.
Sandstone Properties acquired the asset in February 2018 and has since obtained entitlements to develop a 650-unit, 35-story high-rise apartment building on the location of the existing parking structure. The entitlements also allow for the 10,000 sq. ft. expansion of the existing office building and its conversion to a four-story, 240-key luxury hotel.
“There is rapidly growing demand for both luxury hospitality and residential offerings in the Woodland Hills area, driven by the comprehensive development projects at the Warner Center,” said Patrick Tan, VP, RobertDouglas. “6400 Canoga occupies a desirable cornerstone location within the transit-oriented, master-planned business district.”
Stephen O’Connor, principal/managing director, added, “We are pleased to complete this predevelopment bridge financing despite volatility in the real estate capital markets. We attribute the success of this transaction to the development business plan and strategic vision of Sandstone Properties.”