Malibu mixed-use secures $ 130 million loan
Pacific Equity Properties Inc. continues to make progress in the development of Cross Creek Ranch Malibu in Malibu, California, now that it has secured construction financing for the 112,000 square foot mixed-use project. With the help of investment and advisory firm Integrated Capital Management LLC, Pacific Equity secured a $ 130 million loan through Related Fund Management in one of the largest construction loan operations closed in Los Angeles County since the start of the year.
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Located on 13 acres in the heart of the Malibu shopping district, Cross Creek will feature 70,000 square feet of premier retail and dining offerings, 10,000 of which will include indoor dining, in addition to 42,000 square feet of office space. creative class A and vast undergrounds. and surface parking. Perhaps the central feature of the development designed by Marmol Radziner will be space: 80% of the area of the mixed-use destination will be set aside for landscape architecture, water treatments and gathering spaces, all designed to create a common village atmosphere.
Beyond finding funding for Cross Creek, Integrated is playing another key role in the project. “With Cross Creek Ranch Malibu, Integrated made an initial co-investment from its discretionary and diversified investment fund to advance pre-development into a ready-to-go project. As the project progressed, Integrated was able to successfully increase its investment in this extremely high access opportunity by raising an additional investment vehicle for sidecar, ”said Robert Lindner, Co-Founder and Managing Director of ‘Integrated Capital Management LLC. Director of Commercial Property.
Proactive in the midst of the pandemic
Cross Creek has been in the works for some time and holds the distinction of being the largest development to gain approval since the City of Malibu was incorporated 30 years ago. This approval came just as the COVID-19 pandemic was hitting the U.S. However, stakeholders in Cross Creek were not deterred by the widespread economic uncertainty that accompanied it and icy financial markets.
“The process of securing construction financing on behalf of the developer was dramatically improved by Integrated’s intimate knowledge of the asset, as well as by lenders appreciating and evaluating that Integrated had a material skin in the game.” Lindner said. “I think having lived through the story of how Cross Creek Ranch Malibu has evolved, moved forward and gone through tough times, combined with local market knowledge and a genuine passion for the asset, really gave to Integrated a perspective that resonated with the financial markets. ”
Newmark is the retail leasing spearhead for Cross Creek, while CBRE is responsible for overseeing leasing for the office segment. The project is on schedule for an official opening in 2023.