Six Peak, Grandview Secure Construction Loan for Multifamily Project on LA’s Westside
By Greg Cornfield October 18, 2022 4:25 pm
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Six Peak Capital and Grandview Partners have secured financing to build 49 multifamily units in Los Angeles, which is grappling with a yearslong housing shortage.
East West Bank provided the $40 million senior construction loan for the ground-up development in the Mar Vista neighborhood on L.A.’s Westside. WAY Capital announced the financing and represented the borrowers.
The development calls for two four-story structures at 4339 and 4367 Berryman Avenue. They will feature a mix of three-, five- and six-bedroom units, ranging in size from 1,297 to 2,204 square feet. Construction is anticipated to be complete in 2024.
“The projects represent our conviction around providing housing in some of the most expensive locations in L.A., near critical job centers at more attainable price points for the young professional workforce,” Chris Aiello, partner at Six Peak Capital, said in a statement.
WAY Capital’s Malcolm Davies and Zachary Streit led the team that sourced the financing.
“The suite living projects are a modern solution to the ongoing housing shortage and availability crisis,” Davies said. “This project provides a beautiful living environment in Mar Vista, a neighborhood desirable for Millennials and Gen Z.”
Earlier this month, Commercial Observer reported that East West provided $100 million to refinance a series of small, newly constructed single-family rental homes about five miles from Berryman Avenue for Angelo Gordon and Thomas James Homes.
The Westside has the highest average rent in Greater L.A. at $2,790 per month, and by far the highest average sale price per unit at $533,174. The county averages $2,148 for rent and $424,911 for unit price, according to Colliers (CIGI)’ third-quarter multifamily report.
Gregory Cornfield can be reached at gcornfield@commercialobserver.com.
