Westwood Financial Raises $70M in Debt Capital

Westwood Financial has closed on a $70 million term loan upsize to the firm’s unsecured credit facility. The debt is a five-year term loan inclusive of two 12-month stated options in the 4th and 5th years.

KeyBanc served as the agent and Capital One as the co-lead on the new debt. Synovus, a new bank joining the facility, provided a $20 million commitment to the term loan.

The upsize brings the Los Angeles-based real estate investment firm’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 for general corporate purposes, including the repayment of upcoming mortgage debt maturities and future acquisitions.

“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,” said Juyuan Wei, CFO of Westwood Financial.

Westwood Financial raised $95 million in 2019, $60 million in 2020 and 2021, and $100 million in 2022. The firm said it plans to raise additional debt as its secured mortgages mature over the next 36 months.

Established in 1970 by Howard Banchik and Steven Fogel, the firm owns, manages, and operates more than 125 properties with a 97% occupancy across the firm’s portfolio and has a dominant presence in the Sunbelt region.