Priority Capital Advisory, a boutique debt and equity capital advisor based in Los Angeles, has successfully secured $18 million in senior debt financing for the development of 17188 Chatsworth. This new affordable multifamily community will consist of 69 units and is located in Granada Hills. The financing was arranged by founder and president Zachary Streit on behalf of the joint venture between local developers KH Equities and BMI Development.
The project is partaking in Los Angeles Mayor Bass’s ED-1 initiative, which simplifies the approval process for affordable housing projects. This unique aspect generated significant interest from debt capital markets due to its affordability, substantial tax abatement benefits, and streamlined approvals under the ED1 program. Priority Capital was able to secure final financing with an impressive loan-to-cost ratio of 91%.
According to Streit: “While a loan-to-cost ratio of 91% is remarkable on its own – it’s actually the highest I’ve encountered throughout my nearly two-decade career in commercial real estate finance – what truly sets this deal apart is how aggressively lenders participated.”
This achievement marks another successful milestone for Priority Capital as they continue their mission to provide exceptional financial solutions for their clients’ real estate endeavors. Their dedication has once again proven fruitful as they secure funding that surpasses industry standards while navigating through complex initiatives such as ED-1.
