Los Angeles, CA
CBRE Closes $117 Million Construction Financing for One of the First Ground-Up Office Projects in Los Angeles’ Westside
November 15, 2022
CBRE announced the closing of $117 million in construction financing for a state-of-the-art creative office project in one of the most coveted and supply-constrained submarkets in Los Angeles. Located at 4204-4230 Glencoe Avenue in West L.A.’s Silicon Beach, the low-rise campus branded “42xx” will span 151,000 sq. ft. and is one of the first ground-up office projects in Los Angeles to move forward post-pandemic.
CBRE’s Greg Grant facilitated the financing on behalf of the project’s owner, The Bradmore Group, a private equity real estate firm based in Marina del Rey. Grant paired two institutional lenders to execute the $117 million financing via a senior loan with subordinate mezzanine debt.
The Bradmore Group, which owns and manages a portfolio of over 70 buildings totaling more than 1.5 million sq. ft., has owned the Glencoe property since 1961 and has pursued entitlements for office use over the last several years. National developer Lincoln Property Company will oversee construction of the project in conjunction with The Bradmore Group.
“In the office sector today, it is no longer just about flight to quality, but rather flight to experience,” said Greg Grant, Senior Vice President, CBRE. “The Bradmore Group and Lincoln Property Company are delivering a best-in-class office campus that is distinctly different and surrounded by amenities that tenants value.”
Designed with modern aesthetics and an emphasis on health and sustainability, the property will incorporate the use of Mass Timber, an strong, low-carbon alternative to concrete and steel. It is one of the first sizeable developments employing the new category of wood in construction in Los Angeles. As a result, the project’s carbon footprint will be reduced. Upon completion, the property will feature three prominently positioned, three-story office buildings seamlessly connected via exterior corridors and stairways, providing the flexibility to accommodate a single tenant or multiple users.
“Silicon Beach is one of the most dynamic media and technology submarkets in the country,” said CBRE’s Jeff Pion, exclusive leasing agent for the property. “With private decks and ample outdoor space, 42xx has been designed to offer tenants a world-class experience while maintaining the area’s local SoCal character.”
The building’s West L.A. location in the heart of the Marina Arts District is surrounded by newly delivered condo and apartment residences and adjacent to an array of popular restaurants and entertainment amenities.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2021 revenue). The company has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.