$85M Beverly Hills Mixed-Use Project Secures Construction Financing
Event summary
- $85M construction loan arranged for 297,771 sq. ft. mixed-use project in Beverly Hills.
- Four-year loan structured at 65% loan-to-cost for 140 luxury residences and 13,303 sq. ft. retail.
- Project includes 22 affordable housing units and extensive amenities.
- Sponsor acquired property in October 2014, spent over a decade on entitlements.
- Expected to be largest residential complex in Beverly Hills' history.
The big picture
This $85M financing underscores continued investor confidence in Beverly Hills' long-term fundamentals despite supply constraints. The deal highlights the strategic value of patient capital and strong sponsorship in navigating complex entitlement processes. Marcus & Millichap Capital Corporation's role reflects broader industry trends of specialized capital solutions for high-barrier markets.
What we're watching
- Market Confidence
- How lender commitment to high-end Southern California projects reflects in other prime markets.
- Execution Risk
- The pace at which similarly complex entitlement processes advance in supply-constrained markets.
- Affordable Housing Impact
- Whether inclusion of affordable units becomes a standard requirement for large-scale luxury developments.
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