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Deals & Dealmakers

Lightstone Capital finances $76 million for California properties

Lightstone Capital, the real estate debt platform of Lightstone, announced today that it has provided mortgages totaling $76 million for four California properties.

Lightstone Capital originated a $49 million first mortgage for a portfolio consisting of a mixed-use development site in Santa Monica and two multifamily buildings in the Sawtelle section of Los Angeles.  The company also originated a $27 million first mortgage for a 105,000-square-foot warehouse on a 12-acre parcel in Vernon.

Lightstone Capital provides sponsors with flexible, creative, and immediate financing solutions. Loans range in size from $5 million up to $100 million and are secured by real estate assets located in gateway markets. The company has closed more than $200 million in loans in Q1 2022 and expects to hit $750 million this year.

The $49 million portfolio includes a property on 7th Street in Downtown Santa Monica, that is entitled for 159 units across two buildings.  It also includes two multifamily buildings at 1421 and 1427 Barry Avenue in Sawtelle.  Justin Piasecki and Richard Sutton of Lev and Rahim Thobani of RST Capital Partners brokered the financing. 

The developer of the portfolio is WSC Communities, an experienced real estate investor, developer, and curator focused on turnkey multifamily development projects throughout Los Angeles.  NMS Residential, an affiliate of WSC, will be the manager.

“One of our strengths at Lightstone Capital is our ability to adapt to the needs of our clients,” said Eugene Rozovsky, Senior Managing Director, who leads Lightstone Capital. “For WSC, we were able to provide a creative solution, which gave them a single loan that allowed them to execute two separate business plans – one for each unique asset. The fact that this is the third financing we have done with WSC indicates we are continuing to meet their high expectations.”

“As has been the case on prior financings, Lightstone once again showed their creative thinking and willingness to be flexible to get a complicated transaction done,” said Greg Proniloff, Vice President of Finance at WSC.  We look forward to continuing to work with their very capable team and would recommend them to any borrower.”

“Lightstone has been a great lending partner for us to work with,” said Piasecki, of Lev.  “This is our third transaction with them over the past two to three years.”

The Vernon warehouse property in situated on Alameda Street, a main thoroughfare to the port of Los Angeles, and is 100 percent leased by three tenants with significant remaining lease terms.  Edward Choi, President of Amherst Real Estate Capital, brokered the loan. 

“The key to this project was our ability to close it within their very tight deadline,” said John Zubak, Lightstone Capital’s Vice President of West Coast Originations, who led the transaction.  “Being responsive to the client’s needs is at the core of what we do.”

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