Dekel Capital, on behalf of Los Angeles-based CGI Strategies, has arranged $47.8 million in non-recourse construction financing for the development of a 200-unit multifamily community in Los Angeles’ Koreatown neighborhood.
The loan, which was provided by a national lender, will be used for the construction of a seven-story concrete and wood building, over two levels of subterranean parking at 837 S. Fedora Street. The property will feature a mix of studio, one- and two-bedroom floor plans ranging in size from 622 to 1,000 square feet. Ten percent of the units are earmarked for low-income renters. Property amenities include a fully equipped fitness center, 6,500-square-foot community lounge and clubhouse, exterior courtyard and a 5,400-square-foot rooftop lounge.
The property is situated six blocks from the Wilshire/Normandie Metro station, providing residents with easy access to major Los Angeles employment centers, as well as recreational and entertainment venues in the area.
Koreatown is the densest neighborhood in Los Angeles and is primed for another six percent of population growth over the next five years, according to recent research from JLL. Currently, 91 percent of Koreatown residents are renters, making it one of Los Angeles’ premier rental markets. Located four miles east of downtown Los Angeles, the submarket has a particular appeal to millennials, who are drawn to the area’s vibrant restaurant scene, relative affordability, walkability and proximity to the urban core.
Fedora is CGI’s third ground-up multifamily development totaling 380 units in the Koreatown neighborhood in the past 36 months.
“CGI is an experienced developer that has a strong track record of developing ground-up developments and income-producing real estate in Southern California, including several other developments in the Mid-City/Mid-Wilshire/Koreatown neighborhoods” said Dekel Principal Shlomi Ronen. “Given the strength of the market and the sponsor’s expertise, we received a robust response from potential lenders.”
Construction is expected to be completed by Summer 2022.