CMCT Announces Close of Co-Investment at Premier Los Angeles Multifamily Property
CMCT announced that an international institutional investor has acquired a 49% interest in 1902 Park Ave., a Class A apartment property in Los Angeles' Echo Park neighborhood. The proceeds were used to repay the mortgage and distribute funds to CMCT and another CIM-advised fund. Both funds will earn management and potential incentive fees based on performance. The 75-unit apartment community is adjacent to 1910 W. Sunset Blvd., where CMCT is developing a 36-unit apartment community expected to complete in Q3 2025.
CMCT ha annunciato che un investitore istituzionale internazionale ha acquisito una partecipazione del 49% in 1902 Park Ave., una proprietà residenziale di Classe A nel quartiere Echo Park di Los Angeles. I proventi sono stati utilizzati per ripagare il mutuo e distribuire fondi a CMCT e a un altro fondo consigliato da CIM. Entrambi i fondi guadagneranno commissioni di gestione e potenziali commissioni incentivanti basate sulle performance. La comunità residenziale, composta da 75 unità, si trova vicino a 1910 W. Sunset Blvd., dove CMCT sta sviluppando una comunità residenziale di 36 unità che dovrebbe essere completata nel terzo trimestre del 2025.
CMCT anunció que un inversor institucional internacional ha adquirido una participación del 49% en 1902 Park Ave., una propiedad de apartamentos de Clase A en el vecindario Echo Park de Los Ángeles. Los fondos obtenidos se utilizaron para pagar la hipoteca y distribuir fondos a CMCT y a otro fondo asesorado por CIM. Ambos fondos ganarán honorarios de gestión y posibles tarifas de incentivos basadas en el rendimiento. La comunidad de apartamentos, que cuenta con 75 unidades, está adyacente a 1910 W. Sunset Blvd., donde CMCT está desarrollando una comunidad de apartamentos de 36 unidades que se espera esté completada en el tercer trimestre de 2025.
CMCT는 국제 기관 투자자가 로스앤젤레스 에코 파크 지역의 A등급 아파트인 1902 Park Ave.의 49% 지분을 인수했다고 발표했습니다. 수익금은 모기지를 상환하고 CMCT 및 CIM 자문 펀드에 자금을 배분하는 데 사용되었습니다. 두 펀드는 성과에 따라 관리 수수료와 잠재적인 인센티브 수수료를 받을 것입니다. 75개 유닛으로 구성된 아파트 커뮤니티는 1910 W. Sunset Blvd.와 인접해 있으며, CMCT는 2025년 3분기 완료 예정인 36개 유닛 아파트 커뮤니티를 개발하고 있습니다.
CMCT a annoncé qu'un investisseur institutionnel international a acquis une participation de 49% dans 1902 Park Ave., une propriété d'appartements de Classe A dans le quartier d'Echo Park à Los Angeles. Les fonds obtenus ont été utilisés pour rembourser l'hypothèque et distribuer des fonds à CMCT ainsi qu'à un autre fonds conseillé par CIM. Les deux fonds percevront des frais de gestion et des frais incitatifs potentiels basés sur la performance. La communauté d'appartements de 75 unités est adjacente à 1910 W. Sunset Blvd., où CMCT développe une communauté d'appartements de 36 unités qui devrait être achevée au troisième trimestre 2025.
CMCT hat angekündigt, dass ein internationaler institutioneller Investor einen Anteil von 49% an 1902 Park Ave., einer Wohnimmobilie der Klasse A im Echo Park-Viertel von Los Angeles, übernommen hat. Die Einnahmen wurden verwendet, um die Hypothek zurückzuzahlen und Gelder an CMCT sowie an einen weiteren von CIM beratenen Fonds zu verteilen. Beide Fonds werden Verwaltungs- und potenzielle Leistungsgebühren basierend auf der Performance verdienen. Die 75-Einheiten-Wohnanlage befindet sich in der Nähe von 1910 W. Sunset Blvd., wo CMCT eine Wohnanlage mit 36 Einheiten entwickelt, die voraussichtlich im dritten Quartal 2025 abgeschlossen wird.
- Generated cash distribution from 49% stake sale
- Secured recurring management fee stream
- Eliminated mortgage debt on the property
- Maintains partial ownership in prime Los Angeles real estate
- Reduced ownership stake from 50% to 25.5% in the property
Insights
This strategic co-investment transaction strengthens CMCT's financial position and revenue streams in multiple ways. The deal provides immediate liquidity through the mortgage payoff and cash distribution, while establishing a new recurring revenue source through management and potential incentive fees. The 49% stake sale in 1902 Park Ave. demonstrates strong institutional investor interest in the Echo Park submarket.
The clustering of CMCT's assets in this area (1902 Park Ave., 1910 W. Sunset office building and the upcoming 36-unit development) creates operational synergies and positions them to benefit from the neighborhood's growth. This mixed-use portfolio approach, combined with institutional partnerships, reduces development risk while maintaining significant upside potential through fee income and property appreciation.
Transaction provides cash distribution to CMCT as well a recurring management fee
Proceeds from the investment were used to pay off the mortgage and fund a distribution to CMCT and another CIM-advised fund. CMCT and the CIM-advised fund each acquired a 50 percent ownership in 1902 Park Ave. in early 2023 in an off-market transaction. These two funds will earn a management fee and potentially an incentive fee based on future performance.
1902 Park Ave. is a 75-unit apartment community located adjacent to 1910 W. Sunset Blvd., an eight-story creative office property that was acquired by CMCT in February 2022. CMCT is currently developing a former surface parking lot at 1910 W. Sunset Boulevard into a 36-unit premier apartment community, which is expected to be complete in the third quarter of 2025. Both the 1910 W. Sunset Blvd. creative office building and apartment development are CMCT joint ventures with an international pension fund.
ABOUT CMCT
Creative Media & Community Trust Corporation (“CMCT”) is a real estate investment trust that owns, operates and develops premier multifamily and creative office assets in vibrant communities throughout
Forward-Looking Statements
This press release contains certain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which are intended to be covered by the safe harbors created thereby. These statements include the plans and objectives of management for future operations, including plans relating to 1902 Park Avenue and 1910 W. Sunset Blvd. Such forward-looking statements can be identified by the use of forward-looking terminology such as “may,” “will,” “project,” “target,” “expect,” “intend,” “might,” “believe,” “anticipate,” “estimate,” “could,” “would,” “continue,” “pursue,” “potential,” “forecast,” “seek,” “plan,” or “should,” or “goal” or the negative thereof or other variations or similar words or phrases. Such forward-looking statements also include, among others, statements about CMCT’s plans and objectives relating to 1902 Park Avenue and 1910 W. Sunset Blvd. Such forward-looking statements are based on particular assumptions that management of CMCT has made in light of its experience, as well as its perception of expected future developments and other factors that it believes are appropriate under the circumstances. Forward-looking statements are necessarily estimates reflecting the judgment of CMCT’s management and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. These risks and uncertainties include those associated with (i) the timing, form, and operational effects of CMCT’s development activities, (ii) the ability of CMCT to raise in place rents to existing market rents and to maintain or increase occupancy levels, (iii) fluctuations in market rents, (iv) the effects of inflation and continuing higher interest rates on the operations and profitability of CMCT and (v) general economic, market and other conditions. Additional important factors that could cause CMCT’s actual results to differ materially from CMCT’s expectations are discussed in “Item 1A—Risk Factors” in CMCT’s Annual Report on Form 10-K for the year ended December 31, 2023 and in Part II, Item 1A of CMCT’s Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission from time to time. The forward-looking statements included herein are based on current expectations and there can be no assurance that these expectations will be attained. Assumptions relating to the foregoing involve judgments with respect to, among other things, future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond CMCT’s control. Although we believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could be inaccurate and, therefore, there can be no assurance that the forward-looking statements expressed or implied will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements expressed or implied herein, the inclusion of such information should not be regarded as a representation by CMCT or any other person that CMCT’s objectives and plans will be achieved. Readers are cautioned not to place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date they are made. CMCT does not undertake to update them to reflect changes that occur after the date they are made, except as may be required by applicable laws.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241107710873/en/
Karen Diehl
Diehl Communications
310-741-9097
karen@diehlcommunications.com
Shareholder Relations
CIM Group
646-652-8473
shareholderrelations@cimgroup.com
Source: Creative Media & Community Trust Corporation
FAQ
What percentage stake did the international investor acquire in CMCT's 1902 Park Ave property?
When is CMCT's 36-unit apartment development at 1910 W. Sunset Boulevard expected to complete?
How many units does CMCT's 1902 Park Ave apartment community have?
What will CMCT receive from the co-investment transaction at 1902 Park Ave?
