Greystar Lands $95M Construction Loan for Multifamily Project in Greater L.A.
Plan calls for 259 multifamily units and 64 three-story build-to-rent townhome units in Santa Clarita
By Greg Cornfield March 29, 2024 10:45 am
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A plan to build a large multifamily and townhome community north of Los Angeles’ San Fernando Valley has secured construction financing to break ground.
Real estate investment company Kennedy Wilson announced it provided a senior construction loan of approximately $95 million to Greystar Real Estate Partners and The Resmark Companies. With it, the joint venture will break ground on 259 multifamily units and 64 three-story build-to-rent townhome units in Santa Clarita, Calif., about 35 miles northwest of Downtown Los Angeles.
The investment firm did not disclose the terms of the financing.
The development will also feature a 45,000-square-foot retail center anchored by Sprouts Farmers Market grocery store, a resort-style pool and spa, parks and walking trails. The multifamily portion will include a fitness center, a club room and courtyard, a game lounge, coworking space, and a fourth-floor sky deck. The development will be part of the 87-acre master-planned Sand Canyon Plaza community on the northeast corner of Sand Canyon and Soledad Canyon Roads, just off State Route 14.
“This is a compelling deal for our group based on the strength of the Santa Clarita rental market, the high barriers to entry, and the joint venture’s well-deserved reputation for delivering high-quality projects,” Thomas Whitesell, head of the debt investment group at Kennedy Wilson, said in a statement.
Kennedy Wilson said its debt platform has hit $7 billion in originations and more than doubled in size in the past year. In Southern California, the firm’s Beverly Hills office acquired PacWest Bancorp’s $2.6 billion construction loan portfolio last spring. Earlier this month, KW also provided a $166 million construction loan for a 600-unit multifamily project in Downtown Long Beach.
Charleston, S.C.-based Greystar claims to be the largest operator of apartments in the United States with $76 billion of assets under management, including over $34 billion of development assets.
Gregory Cornfield can be reached at gcornfield@commercialobserver.com.
