$19M Goes Towards 56-Unit Hollywood Build

LOS ANGELES-GlobeSt.com learns exclusively that La Brea Regency LLC has secured $19.3-million in construction financing for the development of La Brea Regency Lofts, a 56-unit multifamily property in Hollywood. The property will feature 9,000 square feet of retail space, high-end amenities and a parking garage.

Real estate advisory firm Meridian Capital Group arranged the financing, electing for a three-year balance sheet loan. Additionally, the financing features interest-only payments and a LIBOR-based floating rate.

The development project was originally announced in 2010, but “the owners chose to delay the project until they could observe how Hollywood absorbed other multifamily developments, including The Avenue located across the street,” Tal Savariego, VP of Meridian Capital Group, tells GlobeSt.com. Savariego negotiated the financing deal with VP Zev Feder. “Encouraged by the strong performance of Hollywood's new residential developments and the availability of attractive construction financing options the owners decided the timing was right to develop the asset,” says Savariego.

La Brea Regency's impetus to move forward with the project is not surprising. The submarket has seen substantial new multifamily developments coming online, including the Millennium Hollywood, which was just approved by city council members earlier this year. Like La Brea Regency Lofts, the development will also be a mixed-use property. This common theme in new multifamily developments was discussed by experts at the recent USC Casden Multifamily Forecast conference, who agreed that mixed-use properties are the future of multifamily. Experts noted that a lifestyle shift was behind the trend because the renter today wants a property with access to public transportation and a variety of retail and lifestyle amenities on site. La Brea Regency Lofts will fit this mold by offering the earlier mentioned amenities along with nearby access to the redline Metro station.