Westwood Financial Secures $70 Million in Debt Capital
New funding will fuel the continued growth of key assets in the firm’s national portfolio of retail properties
Westwood Financial, a more than 50-year-old retail real estate investment firm based in Los Angeles, has announced via press release that it has closed on a $70-million term loan upsize to the firm’s unsecured credit facility. The upsize of Westwood Financial’s credit facility will enable the firm to significantly progress on its path to becoming an unsecured borrower.
KeyBanc served as the agent and Capital One as the co-lead for the newly raised debt, which is a five-year term loan inclusive of two 12-month stated options in the 4th and 5th years. Synovus, a new bank joining the facility, provided a $20-million commitment to the term loan.
The upsize brings Westwood Financial’s total credit facility commitments to $325 million, which includes a $115-million credit revolver and $210 million in term loans. The interest rate is floating at SOFR plus 1.60% spread, with the option to swap to a fixed rate at any time. The company intends to use the net proceeds of the offering for general corporate purposes, including the repayment of upcoming mortgage debt maturities and future acquisitions.
“With this closing, we are pleased to enhance financial flexibility and unlock new pathways for growth across our portfolio,” said Juyuan Wei, chief financial officer for Westwood Financial. “In a time when access to capital resources has become scarce, we have demonstrated a track record of success that has allowed us to deepen relationships with key lenders. The cost savings and operational efficiencies this funding will strengthen our balance sheet and give way to strategic opportunities.”
This is the latest upsize raised by the company. With the $70 million, Westwood Financial has raised a total of $325 million over the last five years, starting with $95 million in 2019, $60 million in 2020 and 2021, and $100 million in 2022. Future debt raises are planned as the firm’s secured mortgages mature over the next 36 months.
“Since our first transaction, Westwood Financial has proven to be an ideal borrower that has leveraged capital for smart, strategic growth,” said Andy McKown, managing director of KeyBanc Capital Markets Real Estate Syndications. “With this financing, we are supporting new avenues for expansion and look forward to continued success for the firm.”
Set to celebrate its 55th anniversary in 2025, Westwood Financial owns and manages more than 125 properties with a 97% occupancy across the firm’s portfolio and has a dominant presence in the Sunbelt region.
Information for this story was sourced from BusinessWire.
