Priority Capital Advisory (PCA), a premier boutique debt and equity capital advisor for middle market and institutional developers, owners, and investors, arranged $21.6 million in financing on behalf of EGC Real Estate Group to recapitalize Kanvas, its recently completed 67-unit apartment building in Los Angeles’ Koreatown submarket.
Financing was provided by BOLOUR, a fully integrated real estate investment, development and finance firm that invests in value-add assets in emerging and transit-oriented neighborhoods. As part of its platform, BOLOUR provides individually designed debt solutions. PCA President, Zachary Streit arranged the financing.
“As Kanvas was nearing construction completion, our client was looking for an interim, shorter-term, financing solution that provided a path to stabilization,” noted Streit. “With the property experiencing strong leasing activity, this transaction is expected to carry them through stabilization and beyond, when favorable long-term financing can be secured.”
“We are extremely excited to begin Kanvas’ lease up phase and to ultimately reach stabilization in short order,” noted Ron Gonen, President of EGC. “With so many great partners and a solid and conservative investment plan, we were able to collaborate with PCA and Bolour to find a solution that works for all.”
According to Hiren Naik, Vice President at BOLOUR, “Kanvas is a model for the type of multifamily projects that remain attractive lending targets to us even amidst capital market volatility. An experienced developer, high quality design and architecture, strong primary location, and a thoughtful business plan all made this loan work at proceeds conventional lenders could not reach.”
Designed by renowned architecture studio 64North, Kanvas boasts a clean, contemporary design and offers a full suite of amenities including a roof-top amenity deck, fitness center, courtyard, storage space, ground floor retail, bicycle parking, and abundant subterranean and surface parking. In-unit amenities include contemporary finishes, stainless steel appliances, a gas range, balconies, and in-unit washers and dryers. In addition to the 67 units, the multifamily property features 1,105 square feet of ground-floor retail space, best-in-class finishes, and attractive amenities.
Based in Century City in Los Angeles, PCA specializes in arranging highly structured and innovative finance solutions for all commercial property sectors. Led by Streit, the firm is focused on financing transactions with a total capitalization ranging between $30 million and $200 million. Deals incorporate structures across the capital stack for pre-development, development, value-add and stabilized projects across all asset classes. PCA’s current pipeline exceeds $1 billion, including $150 million in application with capital providers.
