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

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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. 

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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.