The Colliers Mortgage Structured Finance Group, based in Los Angeles, successfully secured $24.4 million in construction financing for the development of Kingsley Apartments. This planned 136-unit property will be located in the Koreatown submarket and will offer 100% affordable housing.
Thanks to the city’s Executive Directive 1 initiative (ED 1), which aims to accelerate affordable housing development, ground is set to break on this project in June – only seven months after filing development plans.
Executive managing directors Jonathan Lee and Shahin Yazdi led their team of William Hyatt and Tommy Adelson to arrange this financing with a term of 30 months and optional extensions. The interest rate is set at SOFR plus 2.41%.
Lee commented on how Kingsley Apartments showcases ED-1’s positive impact on the community: “We have a prime example here with a fully affordable project situated within an urban area with easy access to public transportation.” However, due to its recent implementation, many lenders are still unfamiliar with ED-1 resulting in less competitive terms being offered. Fortunately for this project though, they were able secure favorable terms from a lender who understood the program well enough.
This successful arrangement highlights how effective ED-1 can be for developments like Koreatown Apartments that provide much-needed affordable housing options while also promoting urban density near public transit hubs.
