$35M Construction Loan Arranged for Condo Development in Pasadena

Adept Urban, a Pasadena-headquartered real estate construction, architecture and development firm, has secured a $34.5-million construction loan from First Republic Bank for the second phase of a 105-unit luxury condominium development at 245 S. Los Robles Ave., a report by Commercial Observer last week said.

This is the loan that last week was reported to have been arranged by Marcus & Millichap Capital Corporation (MMCC), although the brokerage agency did not reveal the name of the lender when it announced the deal.

The report said sources familiar with the deal confirmed that First Republic Bank provided the financing. The 30-month construction loan was structured with a five-percent adjustable interest rate and a 40-percent loan-to-value ratio.

Adept Urban is the owner, developer and designer of the development called 388 Cordova at 245 S. Los Robles Ave., located at the intersection with Cordova Street, south of Colorado Blvd. near the Old Pasadena neighborhood.

Stefen Chraghchian at MMCC’s Encino office and Sharone Sabar, senior managing director of capital markets for MMCC, arranged the loan for the 388 Cordova project.

“The structure of the deal was complex as the unsold units from phase I were attached to the phase II loan as collateral,” Chraghchian said in a statement. “We negotiated a payout structure for unit sales that would pay down the loan balance over time while allowing the developer to access more immediate sales proceeds.”

The first phase of the development was completed last year. It involved converting an adjacent office tower into a nine-story condominium project with 57 units and 23,000 square feet of office space.

Chraghchian said the second phase will add a 48-unit condominium building.

The new, six-story, 62,100-square-foot project is expected to be completed in 2021. Units will have an average size of about 1,250 square feet and will include an amenity deck with a pool, hot tub, and an outdoor entertainment area.