Manhattan West Real Estate, a division of Century City-based Manhattan West, a global strategic investment firm, plans to develop two multifamily properties totaling 102 units in Echo Park.
Manhattan West and its joint-venture partner, Local Development, are currently pursuing entitlements with the city of Los Angeles via its Transit Oriented Communities Affordable Housing Incentive Program for 801-809 N. Alvarado St. and 900-908 N. Alvarado St., which are situated one block apart.
The new developments will be called 801 Alvarado and 900 Alvarado.
Earlier this month, the joint venture acquired 900 Alvarado, which comprises 15,000 square feet of land, for $4.0 million. In December 2021 it acquired 801 Alvarado, a 12,678-square-foot site, for $4.25 million, and will be demolishing the existing vacant structures in early September. Once entitlements are finalized, construction on both projects is anticipated to begin in late 2023, with completion targeted for approximately 24 months later.
“Echo Park has been thriving over recent years due in part to its convenient location to a number of employment centers, expanding base of trendy local restaurants and shops, and diverse community of artists, musicians and other creatives,” said Adam Norvell, managing director of real estate at Manhattan West. “With this most recent site acquired, we are looking forward to bringing two much-needed, high-quality rental projects with a total of 10 affordable units to Echo Park.”
Both properties will offer residents one-, two- and three-bedroom units (some with balconies) and a rooftop deck, among other amenities. They will also include energy-efficient features such as EV charging stations and solar panels.
The 900 Alvarado site will have 47 units. The building will include five stories of residential units above a two-level, 48-car subterranean parking garage and a fitness center.
The 801 Alvarado project, meanwhile, will have 55 units. The building will include five stories of residences over a two-level, 40-car subterranean parking garage.
“The greater Los Angeles region continues to experience outsized demand for rental product with an extremely tight vacancy rate under 4%,” Norvell said. “Manhattan West has been proactively seeking opportunities to build residential product that will help provide much-needed housing to supply-constrained, employment-rich markets here as well as throughout Southern California.”
Hankey Capital, a bridge lender based in West Los Angeles, originated the senior financing on the acquisitions of both properties. Warren Techentin is designing 801 Alvarado and DE Architects is designing 900 Alvarado.
“It’s very important to us that we provide housing that is attractive to our tenants,” Norvell said. “Both of these projects are walkable to Sunset Boulevard. To me that’s smart development, we can reduce the use of cars. Its access to transportation, food, entertainment, it’s walkable.”
Manhattan West will strive to find the sweet spot in terms of the cost of renting at 801 Alvarado and 900 Alvarado.
“Our goal is to attract tenants that are young professionals working in the creative industries,” Norvell said.
“We have access to all of our major centers of employment,” he added. “If they work at Disney, Warner Bros., Netflix, it’s a quick drive. If they work at Paramount, it’s a quick drive. It’s equidistant to so many centers of employment.”
And the timing is right for this kind of new housing, according to Norvell.
“We’re in an environment that we’re in desperate need of housing,” he said. “Manhattan West is excited to be a part of the solution by creating more housing.”
The firm plans to construct and then operate the two buildings.
“We want to build this and we want to own it indefinitely,” Norvell said. “We’re not building it to flip it. We’re a fully vertically integrated company in that we manage all of our properties in-house. We want folks to love our buildings and stay there long term.”
