Parkview Provides $37M Construction Loan for LA Multifamily Development
The opportunity zone development will cover four lots in Elysian Valley
Parkview Financial has provided a $37.3 million construction loan for the development of 112 apartments just outside of Silver Lake in Los Angeles.
The ownership joint venture is made up of four entities all tied to Mark O. Baatz of Baatz Enterprises, property records show. The development is expected to be complete by the third quarter of 2022. Parkview announced the funding.
The project will cover four lots totaling 2.33 acres between 2908-2965 Allesandro Street in the Elysian Valley — a.k.a. “Frog Town” — sandwiched between the L.A. River and the interchange of the I-5 and Glendale Freeways. Each lot will include a three-story building with one-, two-, and three-bedroom units, as well as ground-floor retail.
The property is located in one of California’s 879 federally designated opportunity zones, which allows tax deferrals for investment in low-income areas.
Prior to the pandemic, multifamily vacancy in Elysian Valley was at 2.6 percent, and has increased to about 4.3 percent, according to Parkview. Overall vacancy for L.A. has climbed to 5.9 percent, according to a third quarter report from Kidder Mathews.
L.A.-based Parkview Financial specializes in ground-up commercial and residential real estate financing with short-term bridge and construction loans.