Priority Capital Advisory, a boutique firm based in Los Angeles, has successfully secured $18 million in senior debt financing for the development of 17188 Chatsworth. This project, located in Granada Hills, will consist of 69 affordable multifamily units and is being developed by local companies KH Equities and BMI Development.
The financing was arranged by Priority Capital’s founder and president Zachary Streit on behalf of the joint venture between KH Equities and BMI Development. The project is participating in Los Angeles Mayor Bass’s ED-1 initiative which aims to streamline the approval process for affordable housing projects. Due to its affordability factor, significant tax abatement benefits, and streamlined approvals under ED-1 initiative; this project generated great interest among debt capital markets.
Priority Capital successfully secured final financing with an exceptionally high loan-to-cost ratio of 91%. According to Streit,”This deal stands out not only because it achieved a remarkable LTC ratio but also due to the aggressive participation from lenders.” He further added that this was one of his most successful deals during his two-decade career as a commercial real estate finance professional.
In summary:
Los Angeles-based Priority Capital Advisory has obtained $18 million senior debt funding for constructing an affordable multifamily community – 17188 Chatsworth – consisting of 69 units at Granada Hills. Founder Zachary Streit negotiated on behalf of sponsorship comprising local developers KH Equities & BMI Development.
The development is partaking in LA Mayor Bass’s ED-1 program which simplifies approval procedures for such projects. Its cost-effectiveness along with substantial tax exemptions attracted considerable attention from lending markets resulting into securing final funding at an impressive loan-to-cost (LTC) ratio reaching up to exceptional level – i.e., highest ever witnessed during Mr.Streit’s almost twenty years long tenure within commercial real estate finance sector.
Mr.Streit stated that while achieving such notable LTC alone is commendable, it was the enthusiastic response from lenders that made this deal stand out. He also mentioned it as one of his most successful deals in a career spanning two decades within commercial real estate finance industry.
