Los Angeles, CA
Commercial Ground-Up Construction10/30/2020
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.