BWE, a national commercial and multifamily mortgage banking company, announced that it has secured a total of $220M in loans for Opus, a newly constructed 428-unit luxury apartment in the renowned Koreatown neighborhood in Los Angeles, California.
Max Sauerman, senior vice president, and Tyler Shebeck, vice president in BWE’s Los Angeles office, originated a $205,000,000 senior loan and a $15,000,000 mezzanine loan on behalf of the borrower, an affiliate of Jamison Properties, LP (“Jamison”), from New York Life Real Estate Investors (NYLREI). The $205M five-year senior loan included full-term interest-only, the rate was locked at application, The $15M floating-rate mezzanine loan was co-terminus with the senior loan and was sized to just over breakeven on current pay. All parties worked closely to close the financing in about 6 weeks from rate lock.
BWE began working closely with Jamison very early in the leasing of the asset to identify a lender that could refinance the construction debt and provide significant cash well in advance of stabilization. Because of the excellent location, superior quality of improvements, and strength of the sponsor, BWE was able to identify a non-recourse, fixed rate balance sheet lender, NYLREI, who was willing to provide “one stop shop” financing for Opus before it was fully stabilized.
“We were thrilled to arrange the financing on this property with the lender, and borrower. We were very happy that we could add immediate value to our client and the lender thanks to our extensive multifamily lending experience,” said Sauerman. “Jamison developed a wonderful project and NYLREI, to their credit, was able to provide excellent loan terms on an asset that was not yet fully stabilized. Regarding the debt, it was refreshing to have a lender that’s comfortable with good real estate, in the right location, and at the right basis, despite choppy capital markets. It is always nice to have all parties very happy with the outcome.”
The property, known as Opus, consists of 428 luxury apartment units throughout two high-rise towers connected by a secured parking garage and amenity deck. The units were built to condo specs and include modern finishes such as floor-to-ceiling windows, open floor plans, high ceilings, luxury appliances, balconies, and smart home features. The unit mix includes eight unit types that are nearly identical throughout each floor offering studio, one-, two-, and three-bedroom units. The property boasts an impressive and extensive amenity package consisting of multiple resident lounges and entertaining spaces, co-working rooms, two state-of-the-art fitness centers, a game room, a movie theater, a golf simulator, a dog park and grooming station, an automated concession room, a rooftop pool with a spa and cabanas, rooftop bars, dining areas, BBQ grills and firepits. The property also includes 10,000 square feet of ground floor commercial space which has very strong leasing activity and is already 33% leased to a coffee shop and a boba shop.
Construction for Opus was completed in June 2024 and pre-leasing started a month prior. By the time TCO was issued in early June, the property was already over 10% leased. Leasing velocity continued at a rapid pace and the property was nearly 90% leased at closing of the loan.
