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California  + Los Angeles  + Office  | 

Del Ray Realty Secures 85% LTV for Beverly Hills MOB Acquisition

Notwithstanding a volatile commercial lending market, particularly relating to office buildings, Del Ray Realty founder Ray Rowshankhah secured a favorable loan structure at 85% LTV for the acquisition of 501 S. Beverly, a three-story office property in Beverly Hills. The sale price was $21.3 million.

Rowshankhah said the majority of 501 S. Beverly will be converted to a Class A medical office & surgery center which will be 51% operated by Dr. Barrett Plastic Surgery, PC, which is opening a second location. Additionally, the new ownership will maintain 49% of the building as tenant occupied, generating strong cash flow and an upside in rents.

Del Ray Realty secured SBA 504 financing of $18.1 million for the acquisition. Built in 1991, the 23,112-square-foot property was renovated in 2021.

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Inside The Story

Del Ray Realty's Rowshankhah

About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 16-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 7-10 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

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