Canyon Partners Real Estate provided two senior bridge loans for the refinancing of local multifamily complexes: $41 million for SaltAire, a 132-unit property in Torrance, and $38 million for Artisan Oaks, a 160-unit property in Santa Clarita.
These deals are emblematic of present opportunity in the debt space, according to Jacob Feingold, head of originations at Canyon.
“Given the ongoing volatility in the capital markets and the significant volume of upcoming debt maturities, we believe the need for bridge debt capital will remain elevated for the foreseeable future,” Feingold said, adding that these deals will render “attractive risk-adjusted returns” for the firm.
Seeking diverse investments
The locations of these multifamily properties also piqued Canyon’s interest. Located within the South Bay submarket, Torrance’s high volume of major employers across various industries and access to beaches and retail attracted Canyon. Looking at Santa Clarita, Canyon pointed out its proximity to major freeways and diverse economic spread.
“Despite ongoing uncertainty with the regulatory framework and headwinds facing the entertainment industry, we believe that certain pockets of Los Angeles remain attractive for investment, particularly in the multifamily sector where many submarkets remain undersupplied relative to long-term housing demand,” Feingold said.
SaltAire’s units range from one to four bedrooms across its six buildings. The complex features a pool and fitness center, which are currently being renovated.
With 17 buildings on its property, Artisan Oaks offers one- and two-bedroom apartments and has a pool and children’s playground along with a recently renovated fitness center and a clubhouse.
Of the $1.1 billion in debt capital the firm has invested across the country since its start in 1991, Canyon Partners Real Estate has put $467 million of that funding toward projects in L.A. County.
For many years, Canyon Partners was headquartered in Century City, however, the firm moved to Dallas in 2021.
“Through our long history of providing both debt and equity capital, Canyon has cultivated deep relationships in the market which allows us to source high-quality opportunities built on a track record of certainty of execution for our borrowers and partners,” Feingold said.
