Cathay Bank Lends $40M for Culver City Multifamily Buy
Helio bought the 135-unit complex as part of an expansion plan in the area
By Greg Cornfield March 7, 2024 11:55 am
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A Los Angeles-based investment firm has secured financing to help it buy a 135-unit multifamily property in Culver City.
A company named Helio Group landed a $40 million loan from Cathay Bank for its $65 million deal to acquire the Cobalt Apartments from Greystar. JLL (JLL)’s capital markets team announced the financing and represented the new owner in securing the funds but declined to disclose the identity of the L.A.-based lender other than to describe it as a regional bank. A source familiar with the deal revealed the name to Commercial Observer.
“Cobalt signifies a new milestone for our local presence as we look to acquire more newly built, Class A assets in our target markets,” Sam Mostadim, principal and managing director of Helio Group, said in a statement.
The deal included more than $3.7 million in transfer taxes via L.A.’s Measure ULA.
The asset is on an 0.9-acre parcel at 10601 Washington Boulevard across the street from Sony Pictures Studios near Interstate 10 and Interstate 405. It was completed in 2019 with an average unit size of 854 square feet, and features 14,754 square feet of ground-floor retail space, a clubroom, a fitness center, a pool and spa, and two open-air lounges.
“It is notoriously difficult to develop apartment buildings in West L.A.-Culver City despite significant undersupply and overwhelming demand,” Kevin Green, executive managing director of investments for Institutional Property Advisors (a division of Marcus & Millichap), said in a statement in February after the property traded hands.
Jeff Sause, Chad Morgan and Jacob Michael led the JLL effort that secured the loan.
Helio Group also said it has other development plans underway in Culver City, and is set to deliver more than 300 units to the market via two nearby apartment projects.
Gregory Cornfield can be reached at gcornfield@commercialobserver.com.
