L.A. Mixed-Use Project Gets Recap

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The Ratkovich Co. has recapitalized The Alhambra, a 1 million-square-foot mixed-use development outside of Los Angeles in a deal valued at more than $200 million. The Los Angeles developer is partnering with AIG, which is taking out the stake that Connecticut General Life Insurance Co. had in the 45-acre property. And Goldman Sachs has agreed to provide $130 million in financing. In addition, a $6.15 million loan was placed on the property's retail component, The Shops at The Alhambra, a 17,693-sf neighborhood center. The financing was arranged by Holliday Fenoglio Fowler LP, which also arranged the equity recap along with Grubb & Ellis. Three years ago, Connecticut General Life had purchased a stake in the property for $27.5 million. IStar Financial had provided $87 million in debt. The property at 1000 South Fremont Ave. in the city of Alhambra, consists of six mid-rise office structures. It was developed in 1999 as the headquarters for CF Braun Engineering. Now, tenants include a mix of commercial, public sector and education companies such as the USC Keck School of Medicine, Tenet Healthcare and the L.A. County Sheriff's Department. The Shops at The Alhambra is connected to the main campus by a pedestrian bridge. Retail tenants include Starbucks, Jamba Juice, Subway and Pick-Up Stix. Overall, the property is more than 95 percent leased. The new venture plans to add a residential component to the property. Plans call for more than 300 condominiums and townhouses, plus a state-of-the-art L.A. Fitness Center gym. In addition, there are seven acres that can be developed in the future.