Parkview Financial recently closed a $15.91 million construction loan to St Andrews Palace, LLC, a Los Angeles-based private developer for the development of a six-story, 65-unit apartment property in the Koreatown neighborhood of Los Angeles. Construction has now commenced with completion anticipated for May 2021.
Located on a .34-acre site at 719 St. Andrews Place, the property includes 51 studios and 14 one-bedroom floor plans with an average size of 451 square feet. Seven units are designated as affordable units. The property will include two levels of assigned parking – one at ground level and one subterranean, a rooftop deck, fitness center, resident lounge, bike parking spaces and extra storage. The units will feature in-unit washer/dryer, stainless steel kitchen appliances, engineered vinyl hardwood flooring and balconies in most units.
“Parkview saw this as a compelling opportunity to provide this 24-month construction loan which includes two extension options for another 12 months,” said Paul Rahimian, CEO with Parkview Financial. “With a continuing demand for housing and a vacancy rate in Los Angeles hovering at around 3.5 percent, this project will be a welcome addition to Koreatown.”
Rahimian added that the developer plans to hold the asset long-term.
Koreatown, and the greater Wilshire/Westlake submarket is one of Los Angeles’ largest apartment markets, comprising 49,265 units. Reis, Inc., a leading CRE data provider, estimates that during 2020 and 2021, developers are expected to deliver a total of 1,116 units of market-rate rental apartments to the submarket.
Parkview has provided in excess of $300 million in new construction financing in the L.A.-area alone over the last 24 months.