J.H. Snyder Co., an L.A.-based real estate developer, has arranged $68 million in bridge financing from Meridian Capital Group for 5250 Lankershim Plaza in North Hollywood in anticipation of tenant turnover.
The nine-story, 179,000-square-foot Class A office building in the NoHo Arts District is 100 percent occupied by seven tenants, including the Art Institute of California and Kaiser Permanente. The majority of the leases will be up in the next several years, necessitating a flexible loan that will allow J.H. Snyder to continue operating the property on its terms, said Seth Grossman, senior managing director at Meridian.
“It was critical to tailor a loan with ample structure to prepare for that roll,” Grossman said in a statement.
The increasing strength of the North Hollywood real estate market was a key factor in Snyder’s decision to take out the bridge loan, according to the firm. Snyder purchased the building in 2009. It has been completely occupied for several years.
Comparable office space in the area leases for about $3.40 a square foot per month, according to real estate database LoopNet.