STUDIO CITY, CA-NK Studio City LLC of Beverly Hills plans to begin construction immediately on a 125-unit project called Grand Vista Apartments with a $21 million construction loan arranged by Los Angeles-based Lucent Capital. Lucent managing director Farzin Emrani says that, although construction financing in this capital constrained market is challenging, “With a high- barrier-to-entry location, strong market fundamentals and qualified sponsors, we were able to negotiate favorable terms for our client.”

The construction loan, which represents 72% of the total development cost, carries an interest rate of Libor plus 2.75% with no floor, so the current interest rate is approximately 3. The loan was provided by Bank of the West.

Grand Vista is a to be developed as a four- and five-story class A complex located at 11154 Aqua Vista St. With the construction financing in place, development of the highly amenitized multifamily complex will begin immediately, Lucent says. Slated for completion in mid 2012, Grand Vista will offer a mix of one-, two- and three-bedroom market rate apartments. Onsite amenities include a swimming pool and sun deck, tennis courts and a clubhouse.

Lucent is a real estate investment banking firm that specializes in equity and debt placement, loan sales for performing and non-performing commercial and residential loan portfolios, and investment sales in the US and Mexico. The company accesses traditional and non-traditional capital across the globe including foreign banks, family offices, private equity funds, pension funds, REITS, banks and insurance companies.