Apartment Investment and Management Company closed a $190.7 million FHA-insured loan to finance the redevelopment of Lincoln Place, a 35-acre property at 1077 Elkgrove Avenue in Venice, Calif.
The FHA-lender Red Mortgage Capital provided the loan, which bears an interest rate of 2.73 percent and is interest-only until 2014, when it converts to a 40-year fully amortizing loan freely pre-payable after 10 years. At closing, Aimco prepaid a $63 million loan secured by the property that required interest at 7.5 percent and that was due in the fourth quarter of 2013.
Over the next two years, Aimco plans to redevelop 41 buildings, which total 631 now-vacant apartment units as well as common areas. In addition, the company will construct 13 new buildings–99 units–on currently vacant land, a 5,000-square-foot leasing center and a 6,100-square-foot fitness center and pool area.
Earlier this year Aimco completed the first phase of redevelopment for four buildings with 65 apartment homes.
“It is very gratifying that the Lincoln Place redevelopment is now underway,” said Terry Considine, chairman and CEO of Aimco. “It has taken many years to arrive here. More, it has taken the hard work of many, including officials of the City of Los Angeles, the HUD Los Angeles field office, and my Aimco teammates. I am delighted by our prospects.”
Built between 1949 and 1951, Lincoln Place was designed by a team led by Ralph Vaughn, an African-American architect interested in the Garden City Movement, popular in the United States in the 1930s. As a result, Lincoln Place is listed on the National Register of Historic Places, the California Register of Historic Places, and is a local Historic-Cultural Monument. Because of its historic significance, the project has been approved for historic tax credits, which Aimco intends to sell, raising $16 million.