East West Bank Refis Single-Family Facility in L.A. for $100M
A joint venture between Angelo Gordon and Thomas James Homes has secured a $100 million facility for single-family rental homes in L.A., Commercial Observer can first report.
East West Bank provided the loan. IPA Capital Markets arranged the financing with a team led by Jordan Ray, Steven Buchwald and Lexington Henn.
“This facility provides a cost-effective takeout of the construction loans as homes are completed and leased to allow for portfolio aggregation, which mitigates most of the risk of a scattered home portfolio,” Buchwald said in a statement
The facility will refinance a series of newly constructed individual small homes, including 1513 and 1515 South Ogden Drive and 1522 and 1524 Wellesley Avenue. The joint venture formed a strategy to source, build and operate the homes, which are Class A single-family rentals with two to four bedrooms each.
“It’s very hard to find land, acquire, entitle and build multifamily in Los Angeles,” Ray said in a statement. “Building and aggregating a portfolio of high-end rentals is a great way to generate scale. The market agreed and we were able to arrange a very well-priced facility.”
Angelo Gordon has acquired over $35 billion in properties globally. The joint venture was formed in 2020 and currently builds and operates newly constructed multifamily in the Los Angeles area.
Officials at Angelo Gordon and Thomas James Homes did not immediately respond to requests for comment.
Emily Fu can be reached at firstname.lastname@example.org.