Madison Realty Capital Lends $110M on New LA Master-Planned Community
By Cathy Cunningham April 20, 2021 8:09 pmreprints
Madison Realty Capital has provided a $110 million loan to a joint venture between Harridge Development, Silverpeak Real Estate Partners and an affiliate of Cerberus Capital Management for The Estates at Ponte Vista, a new master-planned, gated community in San Pedro, Calif., Commercial Observer can first report.
The upscale development, located on the Palos Verdes Peninsula at 27812 South Western Avenue, spans 60 acres and includes 676 single-family home lots.
The site formerly housed U.S. Navy residences. The joint venture acquired it in 2018 — paying $151.6 million, according to The Real Deal — then completed the development of its infrastructure and roads, in order for the lots to be sold to national home builders. The majority of the lots have now either been sold, or are in contract with home developers D.R. Horton and KB Home.
In addition to being in close proximity to the Port of Los Angeles and a host of waterfront dining, shopping and entertainment options, residents will enjoy resort-style community amenities, including a 2.4-acre public park, a swimming pool, and a spa.
“We are pleased to provide an attractive, flexible financing solution to an institutional sponsorship group to support the final stages of the development of much-needed, high-quality, and well-priced housing for San Pedro, a historic neighborhood less than 20 miles south of Downtown Los Angeles,” Josh Zegen, managing principal and co-founder of Madison Realty Capital, said. “Madison Realty Capital has deep experience financing residential projects across the country through every stage of development, from construction through lease-up. Moreover, this transaction represents the third project we have financed for Harridge Development, a world-class real estate developer with a strong track record of execution.”
Adi Chugh of Maverick Commercial Properties arranged the financing.
Madison Realty Capital has remained an active lender throughout the COVID-19 pandemic, providing $145.7 million in construction financing only last week to Accurate Builders and Developers for two multifamily and townhome projects in northern New Jersey.