The One Word That's Exciting Lenders
In land-starved Orange County, the thing to do is redevelop—and lenders, who’ve been reluctant to loosen their purse strings, are keen on the idea, George Smith SVP David Pascale tells us. (He who controls the purse, controls the land... or is just waiting for his wife to get out of the restroom.)
David and colleague Steve Bram recently arranged $51M in bridge financing for DJM Capital Partners’ top-to-bottom renovation of the 123k SF Lido Marina Village, a mixed-use property on Lido Isle in Newport Beach. Demand for redevelopment financing in OC will continue to be strong, especially in coastal markets such as Newport Beach and Huntington Beach, David tells us. They have strong demographics with very little land for anything brand new.
The DJM property will consist of retail, restaurant, and office space in 14 separate structures, along with 47 boat docks and common areas for strolling, shopping, and outdoor entertainment. (And based on the rendering, birds of all sizes will live in harmony on its docks.) The age and condition of the property provides significant room for value-add improvements. DJM purchased the property in an off-market deal last year from Vornado Realty Trust. (If people weren't calling the deal the Lido Shuffle, an opportunity was lost.)
Renovation of competitive OC properties is an important ingredient in keeping them that way, Morningside managing partner Justin Wilson tells us, especially in the uber-competitive seniors housing space. Recently Morningside of Fullerton, a continuing care retirement community in Fullerton (makes sense), began work on a top-to-bottom renovation of its 13k SF dining and kitchen area. It’s being totally re-imagined as a cozier, more casual space.
Expectations are high among seniors, Justin says. The Morningstar renovation reflects the fact that Americans are moving away from the formalities of dining and toward a more casual lifestyle. But it’ll be no cookie-cutter meal service area: look for pizza ovens, a wine room, and a casual bar and lounge. (There may literally be cookie-cutters; we're actually not sure.) KTGY is the architect, while Cole Martinez Curtis and Associates of Marina del Rey is the interior design firm.