Newmark Facilitates Recapitalization of West Harbor, San Pedro’s Highly Anticipated Waterfront Retail Development

Photo Credit to West Harbor

February 14, 2025 9:00 AM

Newmark announces the firm has arranged the recapitalization of West Harbor, a dynamic waterfront “eatertainment” retail destination located at 612 – 1422 S. Harbor Blvd. in Los Angeles’ San Pedro neighborhood. The recapitalization will fund the completion and stabilization of this high-profile dining, entertainment and retail development adjacent to the Port of Los Angeles.

Newmark Executive Vice Chairman Bill Fishel, Directors Wyatt Strahan and Alethia Halamandaris and Associates Broderick Flagg and Anna Sporrong arranged the financing which was efficiently structured, with both a new senior loan and subordinate C-PACE financing which will fund sequentially behind the existing C-PACE lender. This landmark transaction required a pioneering capital structure to fund the project’s accelerated development plans and increased scope driven by strong leasing momentum in the second half of last year.

“Having previously financed the West Harbor project and been involved with other transactions, such as the Alhambra for The Ratkovich Company, it’s been an exciting journey to assist in recapitalizing this transformative waterfront development,” said Fishel, who has worked with the project’s sponsors extensively. “We look forward to seeing the completion of this dynamic project and its positive impact on the surrounding community.”

The new lender for the project is Oceanview Life and Annuity Co., an affiliate of Bayview Asset Management, LLC, an investment management firm focused on investments in mortgage and consumer credit, including whole loans, asset backed securities, mortgage servicing rights, and other credit-related assets. This financing support will enable the completion of the project’s accelerated phases. With the project more than 80% pre-leased, it is poised to serve as a landmark destination for regional retailers and consumers alike.

“Bill and the Newmark team expertly guided us through a complex refinancing of the West Harbor project, providing additional senior secured and PACE debt, and at a lower blended cost of debt capital,” said Eric Johnson, President of Jerico Development. “This refinancing allows West Harbor to take advantage of our recent pre-leasing momentum and combine what originally was a two-phase project delivery into a sustained single phase, accelerating full build-out of the entire West Harbor site by years.”

“The Ratkovich Company appreciates our long working relationship with the Newmark team that has helped us finance several of our real estate projects,” said Milan Ratkovich, Chief Development Officer at The Ratkovich Company. “They succeeded once again in finding a great solution for West Harbor. Capital markets can be tricky today, but Newmark is excellent in navigating those sometimes choppy waters.”

West Harbor features over one mile of water frontage and spans 42 acres, with 117,205 square feet of leasable building area and 204,000 square feet of ground area, plus a proposed 6,200-seat amphitheater. Situated along the main channel of the Port of Los Angeles, the project is adjacent to the World Cruise Center, has direct access to the waterfront and includes 200,000 square feet of leasable waterside premises reserved for traditional vessel excursions and other unique waterside attractions.

Jerico Development and The Ratkovich Company were selected by the City of Los Angeles through a competitive RFP process for the redevelopment of the site. Over the years, they have worked closely with the City and Port of Los Angeles, through the Harbor Commission and other involved stakeholders, to secure the necessary entitlements and bring this important project to life. This long-term public/private partnership has laid the foundation for the project’s current and future success.

About Newmark
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark’s comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform’s global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. For the twelve months ended September 30, 2024, Newmark generated revenues of approximately $2.6 billion. As of that same date, Newmark’s company-owned offices, together with its business partners, operated from nearly 170 offices with more than 7,800 professionals around the world. To learn more, visit nmrk.com or follow @newmark.

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