Despite a volatile market for commercial lending, Del Ray Realty founder Ray Rowshankhah successfully obtained a favorable loan structure at 85% LTV for the purchase of 501 S. Beverly, a three-story office building located in Beverly Hills. The property was sold for $21.3 million.
According to Rowshankhah, the majority of 501 S. Beverly will be transformed into a Class A medical office and surgery center with Dr. Barrett Plastic Surgery, PC operating 51% of the space as their second location. The remaining portion of the building will continue to be occupied by tenants generating strong cash flow and potential rent increases under new ownership.
Del Ray Realty utilized SBA 504 financing in the amount of $18.l million to acquire this property originally built in1991 and recently renovated in2021.
