Los Angeles Construction Lenders for Commercial Real Estate
A list of private construction lenders for Los Angeles commercial real estate development projects, including multifamily, office, retail, industrial, mixed-use, hotels, and others. Ground-up construction financing is a rare offering in private lending. Most lenders will require the developer to have approved building plans. Only a handful of lenders will finance land acquisition and land development in L.A.
Parkview Financial, a direct private lending firm, provided a $16,600,000 construction loan for the development of a six-story, 39-unit apartment project in Central Los Angeles. Located just one block south of the Koreatown neighborhood, the fully entitled, infill site has begun construction with completion anticipated for August 2022.
Situated on a .43-acre land parcel, the 39-unit property will include a one-bedroom unit, 19 two-bedroom units, and 19 three-bedroom units. With overall floorplans averaging 1,194 square feet, all of the residences will feature balconies and a full appliance package including in-unit washer/dryers. Five units are slated for low-income tenancy. The property will also feature a courtyard and two levels of parking (one level is subterranean) with 80 spaces and a 39-space bike rack.
Parkview saw this as a compelling opportunity to provide financing for a rental community within walking distance to Koreatown. This diverse area continues to experience strong gentrification and demand for urban, multi-story rental product. It also provides a multitude of resident-friendly amenities including shopping, dining, and nightclubs, and is convenient to a number of area job centers. We see this submarket performing well over the long-term.
This private construction loan was funded in November 2020.
Private Construction Loan for Los Angeles Mixed-Use Development
Parkview Financial, a direct private lender based in Los Angeles, provided a $37,300,000 construction loan for the development of 112 apartment units with ground floor retail located in the Elysian Valley of North LA. Construction completion is anticipated for 3Q 2022. The project will consist of four, nearby non-contiguous lots totaling 2.33 acres with 108,385-square feet of rentable space. Each of the four lots will include one three-story building. The unit mix will include one-, two-, and three-bedroom units with features including granite countertops and private balconies. Additionally, each of the assets will include an observation deck, ground floor retail, river and bike path access, and surface parking.
The project, which is primarily within a residential area, is walking distance to the Los Angeles River, is surrounded by major Los Angeles job hubs including downtown L.A., Hollywood, Glendale, and Pasadena, and is near the 5 and 110 freeways.
Parkview believes this new planned project will do well since there is a demand for the area and very little new housing coming to market. It is located in between the higher priced areas of Silver Lake, Atwater and Highland Park, and has been capturing renter overflow from these areas as they seek a lower priced, but well-located alternative.
Prior to the COVID-19 pandemic, vacancy in the Elysian Valley was at 2.6 percent, and has demonstrated resiliency with vacancy now at around 4.3 percent. Average rents in Northeast L.A. are about $1,000 per month lower than in nearby downtown L.A.
This private construction loan was funded in October 2020.
Private Money Refinance for Los Angeles Condo Development
Parkview Financial funded a $29MM private money construction loan for an 80-unit condominium complex in Koreatown, Los Angeles. The developer already started the project and had financing in place with another lender at a very high interest rate. They went over budget and needed additional funds to complete the project. Very few lenders would consider refinancing a ground-up construction project. However, we are experts in construction financing, and we are very familiar with Koreatown. We recognized the value of the real estate and the viability of the project. We were able to provide a new private mortgage which gave the developer the additional funds needed, additional time to complete the project, additional time to sell off the units, and better pricing than their previous lender. The property is two blocks south of the Wilshire/Vermont MTA station. It will feature luxury condominium with an average unit size of 1,160 sq ft, with a mix of studio, one-bedroom, two-bedroom, and three-bedroom units. All units will feature modern appliances and top quality amenities. The five-story building includes a pool, spa, interior courtyards, gym, meeting space, and a 188-stall subterranean parking garage.