Pacific Equity Properties has secured a $ 130 million construction loan for Cross Creek Ranch Malibu, a rare large-scale mixed-use development in Malibu.
The subsidiary of related companies, Related Fund Management, provided the loan for the 112,000 square foot project. Pacific Equity announced the deal. Integrated Capital Management advised on the loan and also has “a significant equity stake in the project,” according to the press release.
The 13-acre complex will include 70,000 square feet of retail and restaurant space and 42,000 square feet of office space. The project, not far from Legacy Park and the Malibu Pier, is expected to be completed in 2023. Marmol Radziner is designing the property. The project is located at 23465 Civic Center Way.
Its overall size makes it the largest approved development in Malibu since the city was incorporated 30 years ago, according to a report in Commercial Property Executive. Malibu city officials cleared the project about a year ago, but the funding process slowed when the pandemic struck.
Despite the complications, Pacific Equity and its partners broke new ground in the project, a move the company said helped secure funding.
Malibu, whose luxury residential market is in tear, is light on retail and commercial areas. Most of this activity is concentrated around the small downtown area where Cross Creek Ranch is planned. The late media mogul Jerry Perenchio has amassed a large portfolio of properties in the commercial areas of Malibu, which hit the market a few years ago. The city is also currently reviewing a proposal for a 39-room hotel about a mile southeast along the Pacific Coast Highway.