The Colliers Mortgage Structured Finance Group, based in Los Angeles, successfully secured $24.4 million in construction financing for Kingsley Apartments. This affordable property will consist of 136 units and is located in the Koreatown submarket of Los Angeles. Taking advantage of the city’s Executive Directive 1 initiative (ED 1), which aims to accelerate affordable housing development, the sponsor plans to begin construction in June after submitting their development plans just seven months prior.
Executive managing directors Jonathan Lee and Shahin Yazdi led their team consisting of William Hyatt and Tommy Adelson to arrange this financing with a term of 30 months and optional extensions at a rate equivalent to SOFR plus 2.41%. According to Lee, Kingsley Apartments serves as an example of ED-1’s positive impact on the community by providing much-needed affordable housing options within a dense urban area with easy access to public transportation.
Despite some lenders being hesitant or offering less favorable terms due ED-1 being a relatively new program, Colliers was able secure competitive terms from an understanding lender who recognized its potential benefits for both developers and communities alike.
