$99M and a Construction Loan Ain’t One…of This Developer’s Problems
The AMP Lofts, in Los Angeles’ wealth-besieged Arts District, nabbed $99.9 million in construction financing from CIT Real Estate Finance, Commercial Observer can first report.
HFF arranged the four-year loan for the luxury mixed-use project rising at 695 South Santa Fe Avenue, just east of Downtown L.A., on behalf of developer Greystar.
The project will include 320 apartments and 20,000 feet of ground-floor retail, converting a half-block industrial stretch of the neighborhood where L.A.’s next Soho House, dubbed Soho Warehouse, is now set for completion in 2018.
“CIT is excited to be a part of this marquee transaction, along with Greystar, in the up and coming arts district of LA,” David Pelaia, managing director with the bank, told CO via email. “We’re pleased to be able to provide this senior secured construction facility for AMP Lofts and will look to develop similar projects in the future.”
The region in and around Downtown L.A. has seen a burst of construction lately as capital and talent flows into L.A. and demand for housing surges. Ultra-luxury condos—the mark of a residential real estate market gone international—have sprung up in the area recently, with two planned projects—Greenland USA’s 1,500-unit Metropolis and the Tavitian brothers’ 895-unit 1900 South Broadway—set to cost more than $1 billion.
And even as construction financing has slowed recently, large L.A. projects have managed to secure funds. The Four Seasons Private Residences project in Beverly Hills recently nabbed a $239 million construction loan from hedge fund mega-lender The Children’s Investment Fund, as The Real Deal reported this week.
Amp Lofts will boast a community garden, dog run, “outdoor creative workspace,” club house, indoor and outdoor lounges, outdoor pool and gym, according to HFF. The project is set to open in 2019.
A representative for Greystar did not immediately respond to a request for comment.