Winning the Battle for Marina Del Rey Class-A
Marina Del Rey’s rental market remains red hot, according to CBRE LA vice chairman Brian Eisendrath (ready for battle with co-workers Annie Rice, Cameron Chelfant, Brandon Smith and Ross Moore) with demand for Class-A product as strong as ever. One of the biggest challenges concerning a recent project: Sourcing aggressive capital for a deal that had a capital improvement budget of over $100k per unit. Lenders had to understand the ground lease structure for Marina Del Rey and get comfortable with an extensive marina component consisting of 409 boat slips. Solution: Working with a sponsor who had extensive experience with both ground leases and marinas, which helped lenders understand the deal complexities. Brian adds that as we get further along in the cycle, deals get more complex, with a number of moving pieces. Brian advises that lenders needed to take time to truly comprehend the ground lease structure along with the scope of the renovations to the apartments and the marina. The result is lending on a truly irreplaceable piece of real estate. For more info on our Bisnow partner, click here.
