EGC Real Estate Group Lands $22M Bridge Loan for LA Koreatown Apartment

Ah, loan sweet loan. 

A multifamily building in Los Angeles’ Koreatown developed by EGC Real Estate Group has clinched $21.6 million in short-term bridge financing. 

Real estate investment, development and finance firm Bolour provided the loan, with which EGC plans to recapitalize Kanvas LA, a 67-unit property completed earlier this spring at 905 South Vermont Avenue. Zachary Streit of Priority Capital Advisors arranged the deal. 

“As Kanvas was nearing construction completion, our client was looking for an interim, shorter-term financing solution that provided a path to stabilization,” Streit said in a statement. “With the property experiencing strong leasing activity, this transaction is expected to carry them through stabilization and beyond, when favorable long-term financing can be secured.”

Designed by architecture studio 64North, Kanvas features studio-, one- and two-bedroom apartments, 10 percent of which have been marked as affordable housing. The property also houses about 1,100 square feet of ground-floor retail. 

“Kanvas is a model for the type of multifamily projects that remain attractive lending targets to us even amidst capital market volatility,” Hiren Naik, Bolour’s vice president, said in a statement.

Koreatown is in dire need of more housing these days, and luckily Kanvas isn’t the only multifamily project to secure financing in the historic neighborhood lately. 

Kian Investments, an affiliate of Keren Management, earlier this month secured a $24.4 million construction loan to build the 136-unit Kingsley Apartments, an affordable housing complex at 926-938 South Kingsley Drive. 

Meanwhile, the L.A. Planning Commission in April voted in favor of a plan by Jamison Properties to construct a pair of 23-story mixed-use buildings with a total of 760 units in the neighborhood. That project is awaiting approval by the L.A. City Council.

Nick Trombola can be reached at ntrombola@commercialobserver.com.