Projects no mixed blessing for bank.MIXED use has proven far more than a mixed blessing mixed blessing Noun an event or situation with both advantages and disadvantages mixed blessing n it's a mixed blessing → tiene su lado bueno y su lado malo for Fremont Investment & Loan. A unit of Santa Monica-based Fremont General Corp., the thrift has carved carve v. carved, carv·ing, carves v.tr. 1. a. To divide into pieces by cutting; slice: carved a roast. b. out a niche in mixed-use development Mixed-use development refers to the practice of allowing more than one type of use in a building or set of buildings. In planning zone terms, this can mean some combination of residential, commercial, industrial, office, institutional, or other land uses. . Loans to mixed-used projects last year accounted for 25 percent of its $5.6 billion in construction lending. Recognizing there is little undeveloped space left in Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. , the firm sees the development trend as an attractive opportunity that benefits both residents and cities while providing a solid return on investment. "You have to integrate different opportunities into each project to utilize what little land is left," said Nancy Sulse, Fremont Investment & Loan's vice president and general manager. Still, mixed-use projects are risky investments that require detailed knowledge of office, retail and residential components and their entitlements. When structuring a deal, Fremont looks at the current entitlements as well as the location of the project, since it's easier in some locales than others to alter entitlements. "Entitlement issues that go into a mixed-use project make it a public policy issue. For every risk, we have structured a way to mitigate that risk," Sulse said. The firm often takes on challenging development plans that have significant hurdles and approvals to overcome. However, it may create milestones that a developer must fulfill in order to receive the full amount of a loan. Among its projects, Fremont has provided $63 million to IDS Real Estate Group for its 6.3-acre Metropolis project Metropolis is an international network for comparative research and public policy development on migration, diversity, and immigrant integration in cities in Canada and around the world. in downtown Los Angeles Downtown Los Angeles is the central business district of Los Angeles, California, located close to the geographic center of the metropolitan area. The sprawling, multi-centered megacity is such that its downtown core is often considered just another district like Hollywood or . The project generated significant interest from numerous lenders because of its size and location. "We chose Fremont because of their ability to recognize the value in the property and work with our business plan," said Patrick Spillane, IDS Real Estate Group senior vice president. Fremont also invested in an old office campus in the city of Hawthorne. "We had an exit strategy and chose to lend on a project that hadn't been occupied for years," Sulse said. Best Lender Fremont Investment & Loan Tom Whitesell, senior vice president of commercial real estate Nancy Sulse, vice president and regional manager Assets: $11 billion 2005 Loans: $5.65 billion Description: Commercial and residential real estate lender specializing in commercial loans on mid-market properties, as well as non-conforming residential loans. Quote: "We like doing mixed-use because we have the ability to underwrite To insure; to sell an issue of stocks and bonds or to guarantee the purchase of unsold stocks and bonds after a public issue. The word underwrite has two meanings. all aspects of the project. Most other lenders are compartmentalized com·part·men·tal·ize tr.v. com·part·men·tal·ized, com·part·men·tal·iz·ing, com·part·men·tal·iz·es To separate into distinct parts, categories, or compartments: "You learn . . . . We see a retail component as a necessity," Sulse said. |
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