Housing Diversity Corp. Secures $41M for DTLA Micro-Housing

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As a housing crisis continues to squeeze Southern California, Housing Diversity Corporation is advancing its micro-housing strategy in Downtown Los Angeles.

The developer announced that it closed a $41.1 million loan for an eight-story apartment building with 227 studio units. Lument Capital provided the funding. 

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The development is located at 1411 South Flower Street in the South Park neighborhood, about a half-block from the Los Angeles Convention Center. It’s also around the corner from another micro-housing project by Housing Diversity Corp.

The building includes 201 market-rate units and 26 apartments that are restricted for extremely low-income residents. The building spans 95,694 square feet on a 15,517-square-foot lot.

The project taps into federal opportunity zone tax breaks, as well as incentives from the city for developing rental units near public transportation stops. Opportunity zones allow investors to defer taxes on capital gains, and the city’s Transit Oriented Communities program provides extra incentives for projects that produce affordable housing units near public transit. 

STS Construction and Development is a partner on the project and provided construction services. Architect Simon Ha of Steinberg Hart led the design.

Seattle-based Housing Diversity Corp. has been targeting opportunity zones and transit-oriented development projects in L.A. the past few years. The firm is also building a micro-housing project with 69 units in Hollywood.

Gregory Cornfield can be reached at gcornfield@commercialobserver.com.