Long Beach Apartment Development Lands $200M Construction Finance
By Greg Cornfield March 26, 2024 9:45 am
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Another major financing deal has closed in Southern California, this one backed by a 600-unit multifamily development set for Downtown Long Beach.
CBRE (CBRE) announced a $200 million, five-year construction loan package led by real estate investment company Kennedy Wilson. It backs the development of a residential project named Alexan West End by landlord R&V Management and developer Trammell Crow Residential.
Kennedy Wilson provided a $166 million construction loan, and a national life insurance company added a $34 million mezzanine loan. CBRE did not immediately disclose the name of the mezz lender or additional terms of the financing.
Alexan West End will feature four buildings, each either seven or eight stories, on about 5.6 acres of an excess parking lot at 600 West Broadway, adjacent to the Hilton Hotel and Long Beach’s One World Trade Center. The development will include units ranging from studios to three-bedrooms, all averaging 767 square feet. It will also feature multiple club lounges with kitchens, along with coffee lounges, an indoor and outdoor fitness center, a resort-style pool and spa, a sky deck with various entertainment areas, and a pet spa with a grooming station.
CBRE’s capital markets team, which included Bill Chiles, Scott Peterson and Morgon Fraser in San Diego and Tom Traynor and Adam Spengler in New York City, arranged the financing.
“This capital allows the developer to get out of the ground when few other projects will and deliver much-needed housing to Long Beach,” Peterson, vice chairman at CBRE, said in a statement.
Despite a difficult capital markets environment (compared to when interest rates were lower before early 2022), the loans in Long Beach add to a string of notable nine- and 10-figure financing deals in Southern California this month.
JPMorgan provided $500 million in a $2 billion construction loan for One Beverly Hills, the Speedway Commerce Center secured a $756 million construction financing package to build part of a massive industrial development in the Inland Empire, and Warner Bros.’ 800,000-square-foot headquarters designed by Frank Gehry landed a $475 million refinancing.
Gregory Cornfield can be reached at gcornfield@commercialobserver.com.
