NORTH HOLLYWOOD, Calif .– (COMMERCIAL THREAD) – 3650 REIT (“3650” or the “Company”), a nationwide commercial real estate lender that issues and manages portfolio loans for relationship borrowers, is pleased to announce that it has issued a loan – Approximately $ 36 million relief for the acquisition and redevelopment of Hollywood Backlot Homes, a 10-acre manufactured home community aimed at meeting the demand for feasible housing options in the Los Angeles market. The loan is for 30 months and is granted to sponsor Multi Opp, LLC, a joint venture between real estate development companies Dugally Oberfeld Capital Partners, LLC and Fabulous Five, LLC.
“As the global pandemic continues to impact real estate market environments across the country, we are very pleased to have seized this truly distinctive opportunity,” said Jonathan Roth, Co-Founder and Managing Partner of 3650 REIT. “The sponsor’s vision for Hollywood Backlot Homes aligns extremely well with the age of social distancing. Its private, detached unit configuration provides residents with true separation alongside Class A multi-family features. Additionally, it dovetails with our continued goal of socially responsible investing, including providing achievable housing options for tenants throughout. the country, particularly in high-cost, low-demand markets like Los Angeles, where demand for this product remains huge. ”
Located in an opportunity area at 8250 Lankershim Boulevard in North Hollywood, California, Hollywood Backlot Homes will be operated as a secluded multi-family rental community. The redevelopment program will involve the sponsor designing and installing nearly 140 manufactured homes. The planned community environment will provide tenants with the comforts of Class A multi-family amenities, including an outdoor swimming pool, clubhouse, gym, billiards and games center, dog tracks, barbecue and a outdoor relaxation area and a closed entrance. The affordable community prices will allow tenants looking for an apartment to enjoy the privacy and extra space of a detached single family home.
Mauricio Oberfeld, co-founder of Multi-Opp, LLC, said, “When we discovered the Hollywood Backlot Homes property, we immediately realized that this would be the perfect property to launch our concept of single-family multi-family rentals, where tenants can enjoy all the benefits of a Class A multifamily asset while living in an isolated residential environment with attainable rents. We believe this project embodies the real purpose of the Opportunity Zones legislation, to encourage investment, housing and job creation in designated opportunity zones, in addition to providing an affordable option for people who may need additional physical space to protect themselves from COVID-19. We are delighted to have completed the acquisition with funding from 3650 REIT, who understood our vision and was able to complete an incredibly complex transaction in less than 30 days.
The 3650 bridge loan program, which uses no leverage in its investments, made the Company an ideal choice to provide reliable financing for the project while the capital markets remain volatile. Another key factor in the borrower’s decision to select 3650 for the loan was the company’s focus on building long-term relationships.
“After another bridge lender was unable to finance the project due to the pandemic, 3650 REIT had the necessary cash and the winning bid. Throughout the process, they were solution-oriented, agile, and engaged throughout their efforts, resulting in developers closing in less than 30 days of signing the terms sheet. This was a complex project and, in the end, the professional staff at 3650 REIT were viewed by the sponsorship as more than just a lender, but a valued member of the team that took on the challenges of the closing of the loan. 3650 became a key advisor in the process, and his level of expertise enhanced the entire business plan to ensure successful stabilization and maximum value, ”said Scott Monroe, Managing Director of NorthMarq’s office in Las Vegas, who organized the fundraising.
About 3650 FPI
3650 (pronounced “Thirty-Six Fifty”) REIT is a nationwide commercial real estate lender that creates and manages portfolio loans for relationship borrowers. 3650 REIT’s highly differentiated lending process, nationwide reach, vertically integrated platform, and Rated Special Servicer status enable it to deliver tailored financing solutions, high quality service, and reliable, focused results. the customer. Co-Founders and Managing Partners Toby Cobb, Justin Kennedy and Jonathan Roth have played a leading role in the evolution of CRE debt markets with a track record of success in CRE loans, mortgage banking, capital markets, the loan service and the management of loans in difficulty. Headquartered in Miami, Florida, with offices in New York, Los Angeles, Chicago, Dallas and Nashville, 3650 REIT is well positioned to lend on properties located across the country. For more information visit: www.3650REIT.com.
About Multi Opp, LLC
Multi Opp, LLC is a developer of housing solutions for the workforce through the use of modular products, moving from simple, affordable boxes to high quality, design-conscious housing. Based in Los Angeles, the partnership between Dugally Oberfeld Capital Partners, LLC and Fabulous Five, LLC is an impact-driven company targeting primary and secondary markets where feasible rentals are scarce. The group’s first two projects, both in Opportunity Zones in Los Angeles, include 8250 Lankershim and the development of a 15-unit stackable project in N. Hollywood.