A joint venture of The Ratkovich Company and Jerico Development has broken ground on a 42-acre redevelopment project on the San Pedro waterfront landing a $90M financing package.
The loans for the West Harbor project, a retail and entertainment, includes $55M in Commercial Property Assessed Clean Energy (C-PACE) financing from Austin-based Petros PACE Finance and a $35M senior construction loan.
The new financing is in addition to $65M in backing from Sacramento-based Osprey Investors.
The 300K SF West Harbor project will reconnect the former Ports O’ Call Village to the San Pedro waterfront. Plans call for indoor and outdoor dining, a bar that extends over the water, a market hall and an artisan craft brewery.
The development will include more than 150K SF of shops and restaurants, four acres of parks and a 6,200-seat amphitheater for live entertainment.
The waterfront entertainment complex will offer harbor cruises, whale watching and sport fishing boat rides and a 1,200-foot dock for private boats. Tenants at the complex will include Mike Hess Brewing, which will operate a brewhouse and a 20K SF beer garden.
The West Harbor project has a 66-year ground lease from the City of Los Angeles and the Port of Los Angeles, which has already spent $100M on infrastructure upgrades at the site.
The C-PACE financing will pay for energy- and water-efficient new construction at terms more favorable than other sources of finance, including a blended interest rate that is lower than traditional construction loans.
Ratkovich has spearheaded several redevelopment projects, including the adaptive reuse of DTLA’s Oviatt Building, an Art Deco-style landmark, and the Chapman Market in Koreatown.
When Ratkovich and Jerico originally filed plans for the waterfront redevelopment in 2016, they were planning to call the venue the San Pedro Public Market. The project is a focal point for the efforts the Port of Los Angeles has made over the last decade to create a pedestrian friendly public waterfront from Banning’s Landing to Cabrillo Beach