Despite a turbulent market for commercial loans, Del Ray Realty founder Ray Rowshankhah successfully obtained a favorable loan structure at 85% LTV to acquire 501 S. Beverly, a three-story office property located in Beverly Hills. The purchase price totaled $21.3 million.
According to Rowshankhah, the majority of the building will be converted into a Class A medical office and surgery center with Dr. Barrett Plastic Surgery, PC operating 51%. This new location marks their second facility opening. Additionally, the remaining 49% of the property will be leased out generating strong cash flow and potential for increased rental rates under new ownership.
Del Ray Realty utilized SBA 504 financing in the amount of $18.1 million for this acquisition of this recently renovated (2021) building originally built in 1991.
