CapitalSource Provides $117M Construction Loan for LA High-Rise Multifamily Property
J.H. Snyder Company and OGO Associates of Wilshire have nabbed $117 million in financing for the ground-up construction of The Residences at Wilshire Curson, a luxury high-rise multifamily property in Los Angeles, Commercial Observer has learned.
CapitalSource provided the five-year non-recourse loan, which features extension options and full-term interest-only payments, in a deal negotiated by Meridian Capital Group’s Seth Grossman, Steve Edelstein and Jackie Tran .
“Non-recourse loan bids for the project were as competitive as I’ve seen in my career for ground-up construction,” Grossman said in prepared remarks. “It’s a testament to the strength and track record of our client. They have planned to build on this site for decades and have been patient and thoughtful in their approach. The market recognized that and could not have been more supportive of the project.”
The development is located at 640 South Curson Avenue in L.A.’s Miracle Mile District. When complete, The Residences at Wilshire Curson will be a state-of-the-art, 20-story, 285-unit apartment building that sits atop a two-story parking garage. Its amenities are set to include a gym, a conference area, a rooftop pool and a clubhouse.
“Jerry Snyder is one of the most prolific developers in L.A. and an L.A. icon. It was a huge thrill to work with him on this transaction,” Patrick Crandall, a director at CapitalSource, told CO, adding that there is significant demand for both affordable and market-rate housing in L.A. “This property is in an outstanding location with completely unobstructed views to the West, and will be hugely successful.”
The property will sit adjacent to SAG-AFTRA Plaza, an 11-story property that is also owned by the developers and was recently refinanced in a $105 million deal, also brokered by Meridian.
“The Residences at Wilshire Curson will bring a luxury apartment living option to the Miracle Mile that has been missing,” Lon Snyder, a partner of J.H. Snyder Company, said in prepared remarks. “After initial plans to develop a Class-A office tower, we recognized that an apartment project of this scale holds substantial pent up demand. We are so excited to finally break ground and continue our company’s legacy of developing along this Wilshire corridor.”