Los Angeles, CA— iBorrow has provided an $18.05 million acquisition loan for the purchase of an approximately 133,000-square-foot office building located on Olympic Blvd., in Koreatown, just west of downtown Los Angeles.
As part of its acquisition loan, iBorrow will fund part of the cost for the borrower to change the use of the property from an office to a hotel, giving the borrower additional flexibility.
The building gained notoriety in 2015 when a fire on the fifth floor forced all of the building’s tenants to vacate the property. The property has been vacant since that time as the previous owner debated which path to take. In the end, the owner decided to sell the property to take advantage of the solid submarket.
“The property is well-located, and appeals to office and retail tenants that do not want to pay downtown rents, but want to be close to the central business district,” said iBorrow CEO Brian Good. “The multitude of potential buyers for the property, at price levels well above the borrower’s purchase price, led us to believe that this was a sound investment. We believe in this area and our borrower has a viable plan to take advantage of the site’s potential.”
iBorrow’s flexible loan structure allowed it to fund a loan on a vacant building within three weeks of signing the application. “My guess is that other lender’s shied away from the deal because of the fire. We were more than willing to lend on the inherent property value despite the current state of the property,” added Good.
The borrower has extensive experience in developing hotels and commercial properties, specifically in Southern California and Koreatown. The loan was originated by Lucas Allen in house at iBorrow.