Arixa, Oaktree Mark Joint Venture
Arixa, Oaktree Mark Joint Venture
LOS ANGELES, September 4, 2023 /Los Angeles Business Journal/ -- Arixa Capital Advisors LLC, a private real estate firm based in Westwood, announced a $100 million joint venture with local private equity giant Oaktree Capital Management LP. The lender and the sponsor are pouncing on a market left unattended after the departures this spring of several regional banks.
The partnership, which was announced on Aug. 24, outlines the potential for future expansion and seeks to originate senior secured loans for residential and commercial real estate developments primarily in Southern California.
Seth Davis, managing director at Arixa, said working with Oaktree offers synergy. ‘‘They’re just familiar when they’re underwriting us and they’re looking at some of the loans we’re doing,” Davis said. ‘‘It’s all addresses and neighborhoods they’re familiar with.”
With the collapse of First Republic Bank and Silicon Valley Bank forcing regional banks to shave off capital commitments, alternative lenders like Arixa have become powerful players for a real estate market hungry for supply.
“With larger commercial and regional banks withdrawing or being restricted, there’s a vast opportunity for us to safely deploy capital,” said Greg Hebner, managing director at Arixa Capital.
This substantial capital will be deployed in a Los Angeles real estate market fragmented between the incorporated and unincorporated – a divide spurred by the recent implementation of Measure ULA.
The citywide tax, effective from April 1, levies a 4% charge on both residential and commercial real estate sales between $5 and $10 million, and a 5.5% for properties valued above $10 million.
Arixa has already seen transaction flow slow, and Hebner suggested the ULA tax may deter projects in Los Angeles entirely, consequently driving up prices in municipalities exempt from the tax.
About Arixa Capital
Arixa Capital is a leading private real estate lender and investment manager. Founded in 2006, we specialize in providing bridge, renovation, and construction loans to professional real estate investors and developers throughout the Western United States. Arixa strives to deliver exceptional client service through its vertically integrated platform and has developed long-term relationships with a substantial base of repeat borrowers over the course of originating more than $3.5 billion in loans since the firm’s inception.
When our borrowers succeed, so do our investors. Arixa’s investment philosophy is focused on working with experienced borrowers who have a history of adding significant value to real estate projects, while building a healthy margin of safety on every loan we make to help preserve investors’ principal. We measure our success by the consistency of our track record and our ability to generate attractive risk-adjusted returns for accredited and institutional investors.
Arixa is led by an accomplished management team averaging 25+ years of relevant real estate lending and investment experience. As an employee-owned firm, we have a personal stake in the success of our borrowers and investors. This partnership has fueled Arixa’s growth as one of the fastest growing private companies in both the Inc. 5000 and the Los Angeles Business Journal rankings. ^1
For additional information, please visit Arixa’s website at https://www.arixacapital.com/.
To learn more about borrowing from Arixa Capital, please reach out to:
Greg Hebner
Managing Director
ghebner@arixacapital.com
Seth Davis
Managing Director
sdavis@arixacapital.com
For media inquiries, please reach out to:
Steve Pavlov
Vice President, Marketing
marketing@arixacapital.com
^1 Arixa provided Inc. de minimis compensation to be considered for the Inc. 5000 list of the fastest-growing private companies in the U.S. To be eligible, companies must have been privately held, operating for profit, independent, and with revenue of $2,000,000+ in 2022. No payment was made to be considered for the Los Angeles Business Journal’s rankings of L.A.’s 100 fastest growing companies. To be eligible, companies must have been privately held company, headquartered in Los Angeles, and in business for a minimum of three years.