Comstock Realty Partners Snags $50M to Remediate SoCal Development Site

Comstock Realty Partners is setting the stage for a 14-acre master-planned community in Los Angeles County after securing remediation financing.

Comstock secured $50 million from lender Schroders Capital tied to Modelo, a sprawling mixed-use development in Commerce, Calif. — southeast of Downtown L.A. — that’s set to feature 740 multifamily units, 45 condo units, 65 townhomes, and 179,501 square feet of retail space between Interstate 5 and Slauson Avenue.

The development received entitlements in 2022 for the current site of Commerce’s Veterans Memorial Park. Comstock will use the newly acquired funds to remediate the property and begin horizontal construction on a 3-acre townhome parcel, according to the firm. Comstock also plans to expand and relocate the park adjacent to the development with a new 45,000-square-foot community center.

“Modelo exemplifies the type of complex, large-scale development where flexible capital solutions are essential,” Paul Bratten, Schroders’ head of U.S. real estate debt investments, said in a statement. “Through this investment, we are positioning the project for long-term success while helping to expand housing supply in a market that remains chronically undersupplied.”

Lionheart Strategic Management’s Andy Klein, Benjamin Eshiwani and Randal Gleeson arranged the financing deal. Bratten led negotiations for Schroders Capital, and Comstock’s Adrian Comstock, Kristin Panehal and Alex Chagoyen represented the development firm in-house. 

Earlier this month, Nuveen agreed to acquire Schroders to create a nearly $2.5 trillion global asset manager. It is expected to close by the final quarter of this year.

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