H.I.G. Realty Partners Originates $48.7 Million Loan Secured by Los Angeles Office Asset
NEW YORK – October 27, 2020 – H.I.G. Capital (“H.I.G.”), a leading global alternative investment firm with over $41 billion of equity capital under management, is pleased to announce that its affiliate, H.I.G. Realty Partners, has originated a $48.7 million loan to finance the redevelopment of Expo 3 (the “Property”), a 94,000 square foot creative office complex located in the Culver City submarket of Los Angeles, CA.
The loan was made to The Luzzatto Company, a Los Angeles-based owner/operator with extensive office redevelopment experience. The Luzzatto Company acquired the site in the Spring of 2019. During the acquisition process, The Luzzatto Company secured a lease for 100% of the Property, on a long-term basis, to a preeminent, health-focused fast casual restaurant chain. The Property will serve as the chain’s corporate headquarters.
“This was a unique opportunity to provide financing for a 100% pre-leased office complex on the West Side of Los Angeles,” said Michael Mestel, Managing Director at H.I.G. Realty Partners. He added, “We are confident that The Luzzatto Company will do a tremendous job completing the project.”
About H.I.G. Realty Partners
H.I.G. Realty Partners is the real estate platform of H.I.G. Capital, a leading global private equity and alternative assets investment firm with over $41 billion of equity capital under management.* H.I.G. Realty Partners manages $7.8 billion of assets and focuses on small-to-mid cap real estate, targeting both equity and debt investments across all property types located throughout the U.S., Europe, and Latin America. Debt investments include senior bridge loans, mezzanine loans and preferred equity collateralized by transitional properties and portfolios. Equity investments are concentrated on the acquisition of value-add assets, employing a hands-on, operationally focused approach that seeks to generate substantial cash flow and asset appreciation through rehabilitating, redeveloping, repositioning and rebranding assets that have been capital starved and/or poorly managed. For more information, please refer to the H.I.G. website www.higcapital.com.
About H.I.G. Capital
H.I.G. is a leading global private equity and alternative assets investment firm with over $41 billion of equity capital under management.* Based in Miami, and with offices in New York, Boston, Chicago, Dallas, Los Angeles, San Francisco, and Atlanta in the U.S., as well as international affiliate offices in London, Hamburg, Madrid, Milan, Paris, Bogotá, Rio de Janeiro and São Paulo, H.I.G. specializes in providing both debt and equity capital to small and mid-sized companies, utilizing a flexible and operationally focused/ value-added approach:
- H.I.G.’s equity funds invest in management buyouts, recapitalizations and corporate carve-outs of both profitable as well as underperforming manufacturing and service businesses.
- H.I.G.’s debt funds invest in senior, unitranche and junior debt financing to companies across the size spectrum, both on a primary (direct origination) basis, as well as in the secondary markets. H.I.G. is also a leading CLO manager, through its WhiteHorse family of vehicles, and manages a publicly traded BDC, WhiteHorse Finance.
- H.I.G.’s real estate funds invest in value-added properties, which can benefit from improved asset management practices.
Since its founding in 1993, H.I.G. has invested in and managed more than 300 companies worldwide. The firm’s current portfolio includes more than 100 companies with combined sales in excess of $30 billion. For more information, please refer to the H.I.G. website at www.higcapital.com.
* Based on total capital commitments managed by H.I.G. Capital and affiliates.