Parkview Financial announced it has provided a $35 million senior construction loan to a venture between The Ratkovich Company and Jerico Development, Inc., for the development of West Harbor, a 42-acre multi-tenant festival retail center located at 1200 Nagoya Way along the Los Angeles waterfront in San Pedro. The transformative project is now under construction with completion anticipated in 2024.
The $35 million financing from Parkview Financial is in addition to $55 million of Commercial Property Assessed Clean Energy (C-PACE) financing, as well as $65 million of investor equity.
“Parkview Financial was immediately attracted to the opportunity to work with Ratkovich and Jerico, a best-in-class borrower team, on this truly unique project that will reshape the San Pedro waterfront. We provided highly structured and bespoke financing that captured the many unique aspects of the development, and we are excited to see this transformative project come to life,” said Paul Rahimian, CEO and Founder of Parkview Financial in a statement.
“Capitalizing a large, ground-up, retail construction project is incredibly difficult in today’s capital markets environment,” added Rahimian. “The borrower was able to demonstrate to us a well-planned and solid project via success with substantial pre-leasing of nearly 70% of the project to best-in-class tenancy; meaningful equity investment from the sponsor; and backing from San Pedro and The Port of Los Angeles. Ultimately, Parkview’s loan dollars will complete the development after all other capital is deployed.”
The site, previously home to Ports O’ Call Village, is owned by the Los Angeles City Harbor Department which has executed a long-term ground lease with the developer. The completed projected, delivered over two phases, will include a total of 125,460 square feet. West Harbor will be anchored by multiple restaurants, including the first satellite location of Yamashiro; King & Queen Cantina with an overwater bar; a market hall for fast-casual dining; Bark Social, a membership off-leash dog park bar and café; a proposed 6,200-seat amphitheater developed in conjunction with the Nederlander Organization—in addition to a number of other tenants.
In recent years, The Port of Los Angeles has expended more than $100 million for infrastructure improvements directly supporting the development of West Harbor, including a promenade and town square, Harbor Boulevard improvements, a recreational dock, an electrical substation, sewer lift station, and a Maritime Museum public pier.