Notwithstanding a volatile commercial lending market, particularly relating to office buildings, Del Ray Realty founder Ray Rowshankhah secured a favorable loan structure at 85% LTV for the acquisition of 501 S. Beverly, a three-story office property in Beverly Hills. The sale price was $21.3 million.
Rowshankhah said the majority of 501 S. Beverly will be converted to a Class A medical office & surgery center which will be 51% operated by Dr. Barrett Plastic Surgery, PC, which is opening a second location. Additionally, the new ownership will maintain 49% of the building as tenant occupied, generating strong cash flow and an upside in rents.
Del Ray Realty secured SBA 504 financing of $18.1 million for the acquisition. Built in 1991, the 23,112-square-foot property was renovated in 2021.
