Columbia Bank Lends $26M for SoCal Housing Development

A seven-story housing development in Los Angeles County will break ground soon after nabbing an eight-figure construction loan.

L.A.-based developer Connected Companies secured the $26 million note toward Prospect Villa, a 75-unit mixed-use project at 7539 and 7545 Garvey Avenue in Rosemead. Columbia Bank provided the financing, Quantum Capital Partners Senior Vice President Kevin Wong confirmed to Commercial Observer. Del Mar Property, an entity managed by an individual named Gerard Ngo, is the site owner, records show. 

“Securing construction financing in today’s capital markets requires a compelling sponsor and a project that truly fits the local demographic,” Wong said in a statement. “The Connected Companies is developing a project that directly addresses the housing needs of Rosemead, and lenders responded positively to the vision of transforming this underutilized site into a vibrant community hub.” 

Alongside the one-, two-, three- and four-bedroom units, the Scales Lab Architects-designed project will feature 6,350 square feet of ground floor retail space. The project could serve as an inflection point for construction on the Garvey Avenue corridor, which is home to multiple undeveloped lots, according to Quantum. 

The average rent in the San Gabriel Valley is $2,039 a month, well below the overall L.A. County average of $2,336, according to a third quarter market report by Lee & Associates. There are also more apartment buildings on the market now than a year ago, per the report, due to strict rent control laws, rising cost of ownership, and higher utility costs and insurance premiums. 

Nick Trombola can be reached at ntrombola@commercialobserver.com