NORTH HOLLYWOOD, Calif.--(BUSINESS WIRE)--3650 REIT, a nationwide commercial real estate lender originating and servicing portfolio loans for relationship borrowers, is pleased to announce it has originated an approximately $36 million bridge loan for the acquisition and redevelopment of Hollywood Backlot Homes, a 10-acre manufactured home community aimed at fulfilling demand for attainable housing options in the Los Angeles market. The loan carries a term of 30 months and is provided to sponsor Multi Opp, LLC, a joint venture between real estate development firms 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 executed on this truly distinctive opportunity,” said 3650 REIT Co-Founder and Managing Partner Jonathan Roth. “The sponsors’ vision for the Hollywood Backlot Homes aligns extremely well with the age of social distancing. Its private, detached unit configuration offers residents true separation alongside class A multifamily features. Moreover, it dovetails with our ongoing goal of socially responsible investing, including providing attainable housing options to renters nationwide, especially in high cost, demand constrained markets like Los Angeles, where there remains tremendous demand for such product.”
Located in an Opportunity Zone at 8250 Lankershim Boulevard in North Hollywood, California, Hollywood Backlot Homes will be operated as a detached multifamily rental community. The redevelopment program will involve the sponsor designing and installing nearly 140 manufactured homes. The master-planned community environment will provide renters with the comforts of class A multifamily amenities, including an outdoor pool, clubhouse, gym, billiards and gaming center, dog runs, barbeque and outdoor lounging area and gated entry. The community’s attainable price points will allow renters otherwise 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 it would be the perfect property to launch our detached multifamily rental concept, where renters can enjoy all the benefits of a class A multifamily asset while living in a detached residential environment with attainable rents. We believe this project embodies the true goal of the Opportunity Zone legislation, to encourage investment, housing and job creation in designated Opportunity Zones, in addition to providing an affordable option for individuals who may need extra physical space for protection against COVID-19. We are thrilled to have closed the acquisition with financing from 3650 REIT, who understood our vision and was able to navigate an incredibly complex transaction in less than 30 days.”
3650’s bridge lending program, which does not employ any leverage in its investments, made the Company an ideal choice to provide reliable financing for the project as the capital markets remain volatile. The firm’s focus on building long-term relationships was another key factor in the borrower’s decision to select 3650 for the loan.
“After another bridge lender was unable to fund the project due to the pandemic, 3650 REIT had the necessary liquidity and the winning bid. Throughout the process they were solution-driven, nimble, and committed throughout their efforts which allowed the developers to close in less than 30 days from the term sheet signing. This was a complex project, and in the end 3650 REIT’s professional staff was viewed by the sponsorship as more than just a lender, but a valued member of the team that met the challenges of the loan closing. 3650 became a key advisor in the process, and its level of expertise lifted the entire business plan to ensure successful stabilization and maximum value,” said Scott Monroe, Managing Director of NorthMarq’s Las Vegas office, who arranged the financing.
About 3650 REIT
3650 (pronounced “Thirty-Six Fifty”) REIT is a nationwide commercial real estate lender originating and servicing portfolio loans for relationship borrowers. 3650 REIT’s highly differentiated lending process, national scale, vertically integrated platform and Rated Special Servicer status enable it to deliver tailored financing solutions, high-touch service and reliable, customer-focused outcomes. Co-Founders and Managing Partners Toby Cobb, Justin Kennedy and Jonathan Roth have played leading roles in the evolution of the CRE debt markets with track records of success across CRE lending, mortgage banking, capital markets, loan servicing and distressed credit management. 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 throughout the country. For more information, visit: www.3650REIT.com.
About Multi Opp, LLC
Multi Opp, LLC is a developer of workforce housing solutions through the use of modular products, taking the jump from simple, affordable boxes to high-quality, design-conscious dwellings. Headquartered in Los Angeles, the partnership between Dugally Oberfeld Capital Partners, LLC and Fabulous Five, LLC, is an impact-focused venture targeting major and secondary markets where attainable rentals are in short supply. The group’s first two projects, both in Opportunity Zones in Los Angeles, include 8250 Lankershim and the development of a stackable, 15-unit project in N. Hollywood.
