Overview

• FAVO acquired the 22-story, Class A mixed-use building at 1818 Hollywood Boulevard for $190 million in an all-stock plus assumption-of-liabilities transaction.
• The deal converts GCF Development into a long-term equity partner in FAVO and preserves on-site management by the original developer.
• This acquisition is FAVO’s first stabilized, income-producing real estate purchase and is intended to diversify its holdings and strengthen the collateral underpinning its private-credit business.
• GCF received 49 million shares of FAVO stock at $0.76 per share and FAVO refinanced the assumed building debt through Blackstone to reduce its leverage.
• Completed in 2022, 1818 Park comprises about 273 apartments, ground-floor retail space and amenities including pools, fitness centers, a rooftop terrace and coworking facilities facing ArtsPark at Young Circle.