Hackman Capital Brings Wall Street Dollars to Town

An affiliate of Hackman Capital, a privately held industrial and commercial real estate firm, recently nabbed a $5 million loan to acquire three office buildings in town, a move that community leaders say signals a turnaround in the economy and a positive development for attracting new Culver City business.

“It does exemplify the strength and vitality of Culver City,” said City Manager John Nachbar. “It’s really hard to get financing for commercial projects.

“Since the financial meltdown, that market has been pretty nonexistent. It’s encouraging to see a deal like that done in Culver City.”

Nancy D. Sidhu, chief economist for the Los Angeles County Economic Development Corp., agreed with Nachbar’s assessment. According to Sidhu, the real estate deal would not have been possible a year ago at the height of the recession.

“Lenders stopped lending, so you couldn’t get any deals done,” Sidhu said.  “The fact that this deal did occur is a signal that the market is loosening up some, and in that sense it can only help Culver City.”

The Commercial Backed Mortgage Securities loan was closed with the help of Verona Capital Markets, which obtained the loan from a major Wall Street bank. A spokesman at Verona Capital Markets declined to comment on the name of the bank. 

The three buildings, which house an office and recording and production studios, are located in the Hayden Tract and are leased by Westwood One, a renowned national radio network that has been in Culver City since the 1980s.

However, the properties are not the only buildings that have caught CEO Michael Hackman’s eye. Although he would not specify possible future deals, he said  he is “very excited about Culver City” and that it is a “highly desirable Westside location that has also experienced a wealth of gentrification over the past few years.”

The presence of a stable tenant such as Westwood One means increased marketability in attracting new businesses, said Chamber of Commerce president Steven Rose. "It is always a good sign of an investment in the community; it is a long-term commitment," he added.

“When the Realtors are marketing space in the area, they can say Westwood One is here in addition to Sony Pictures Entertainment. You make one deal like this and it makes the next deal that much easier,” Sidhu said.