MF1 Provides $329M for 1,000-Unit Portfolio in Downtown LA

Property records show the apartments were owned by developer Barry Shy

reprints


Southern California’s multifamily markets are soaring and more investors and landlords are cashing in.

MF1 Capital has provided $328.8 million in acquisition financing for a five-property, 1,037-unit multifamily portfolio in Downtown Los Angeles. Laguna Point Properties secured the three-year, floating-rate acquisition loan with two 12-month extension options. Property records show the apartments were owned by developer Barry Shy.

SEE ALSO: Deutsche Bank, KSL Partners Provide $185M Refi for Miami Hotel

“This transaction provides Laguna Point with an opportunistic scenario through which the company can reenter the Los Angeles market,” Laguna Point’s Garrett LaBar said in a statement. “Laguna Point believes that the timing could not be better, given the recent gains in occupancy and rent momentum in Downtown L.A. With employees returning to work in the area in large numbers, the portfolio is well-positioned to benefit from the increasing demand for rental housing.”

JLL (JLL) represented the borrower and announced the financing.

The portfolio features four historic pre-war buildings and a 1959 building converted from an office asset, all of which underwent conversions between 2007 and 2010. It includes the 184-unit Lofts, the 214-unit Main, the 198-unit Manhattan, the 178-unit Spring and the 263-unit Tower. They are all located either across the street or a block away from one another in Downtown L.A.’s Historic Core district.

JLL’s Charles Halladay, Jamie Kline and Charlie Vorsheck represented the borrower.

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