A mixed-use project in the Leimert Park neighborhood of South Los Angeles has received a $29 million construction loan.
Parkview Financial provided the loan for a Greenpointe Development project at 4242 Crenshaw Blvd. Once completed, the site will have 124 apartment units and 6,000 square feet of ground-floor retail.
The mixed-use property will replace commercial buildings, which will be demolished. The new five-story building is expected to be completed in October 2022. It will have 60 parking spaces and bike storage.
The units will average 755 square feet. The property will have 18 studios, 43 one-bedroom and 49 one-bedroom market-rate units. It will also have two studio, five one-bedroom and seven two-bedroom low-income units.
“This is Parkview’s third L.A.-area loan with experienced developer Greenpointe Development,” Paul Rahimian, chief executive and founder of Parkview Financial, said in a statement. “This project will help satisfy a local demand for area housing for both single-person households and families at lower rents compared to other pricier nearby areas.”
Parkview Financial said other nearby projects, such as SoFi Stadium in Inglewood, are boons to the area.
“We triangulated value from the nearby developments at high-interest submarkets such as West Adams and Jefferson Park as well as the Sofi Stadium area to get comfortable that 4242 Crenshaw was going to increase in value in the future,” Marty Friedemann, senior underwriter at Parkview Financial, said in a statement.
“The submarket rents are currently much lower than that of the average for Los Angeles, but that is because there has been so little development. When new development does occur, demand is high. In many ways, it is the high rents in the rest of Los Angeles that are driving demand into these often-neglected submarkets,” he added.
It isn’t the only construction loan announced recently.
Earlier this summer Chicago-based Singerman Real Estate and San Diego-based Darnell Capital received $23 million in construction financing for a project on the Palos Verdes Peninsula known as Peninsula Pointe, a senior housing project.
And Columbia Pacific Advisors gave a $27 million construction completion bridge loan to recapitalize the Hyatt Hotel Nue in Hollywood. The hotel, owned by S3D Partners, is located at 1525 N. Cahuenga Blvd.
On the office side, a property in Manhattan Beach was refinanced for $30 million. Beverly Hills-based real estate investment banking firm Sonnenblick-Eichner Co. arranged the 10-year, interest-only loan for El Segundo-based Continental Development Corp.
