Marcus & Millichap Capital Corporation has arranged an $85 million construction loan for a new mixed-use development at 55 N. La Cienega Blvd. in Beverly Hills. The planned project will encompass 297,771 square feet and convert a long-held commercial site into a combination of residential and retail space.
The financing is structured as a four-year construction loan with a loan-to-cost ratio of 65%. The capital was sourced from a national banking institution, providing the sponsor with funding to move forward on the ground-up development. The borrower is described as a private investor.
The mixed-use program calls for 140 luxury multifamily residences above 13,303 square feet of ground-floor retail. According to the financing team, the project is positioned in one of Southern California’s most supply-constrained and sought-after markets, reflecting expectations for strong long-term demand for both residential and retail uses at the site.
Sharone Sabar, executive managing director in MMCC’s Encino office, led the financing effort on behalf of the sponsor. Sabar noted that arranging construction capital for a project of this scale and complexity in Beverly Hills underscores both the sponsor’s positioning and the lender’s confidence in the market’s underlying fundamentals.
The sponsor acquired the property in October 2014 and subsequently undertook a lengthy entitlement and planning process to advance the redevelopment plan. The entitlement timeline stretched over more than a decade before the project reached its current stage, with construction financing now in place to support execution.
The new development will replace the existing commercial use with a vertically integrated residential and retail asset designed to capitalize on its La Cienega Boulevard address. With the construction loan secured, the sponsor is positioned to move from planning into active development, backed by a national bank lender and capital markets support from MMCC.
