Century West Secures Major Financing for Next on Lex

The property will have 494 apartment units and 8,140 square feet of ground floor retail.

LOS ANGELES—Century West Partners has secured $126.4 million in financing to fund the construction of Next on Lex, a 494-unit apartment development with 8,100 square feet of retail space in Glendale. In an earlier story, GlobeSt.com reported that Century West Partners broke ground on the $280 million development, which is likely to be one of the largest multifamily projects of the year. The complex is slated for completion in 2019.

“Century West was looking for a full capital stack solution, including a construction loan, first mortgage and either a JV equity partner or a preferred equity partner,” Brandon Smith, VP in CBRE’s debt and structure finance team, tells GlobeSt.com, adding that capital is not as abundant as it was a year ago. “It is tougher than it was 12 months ago. Lenders are really looking at sponsorship, new supply and absorption in the market,” he adds. “They are asking a lot more questions than they did 12 months ago. I think they are just being careful. Most lenders have filled up on multifamily construction, so there is a portfolio allocation issue that they are dealing with, even if they wanted to lend more.” Smith secured the funding on behalf of Century West, along with CBRE vice chairman Brian Eisendrath.