Northmarq secures $13M bridge loan for South Los Angeles affordable housing development
LOS ANGELES — Juda Penini of Northmarq’s Los Angeles Debt + Equity team arranged $13 million in financing for a mid‑rise multifamily community located at 4752 S. Main Street in South Los Angeles. The four-story property is in the final stages of construction and will offer 53 deeply affordable units, with all residential units income-restricted at or below 30% of Area Median Income.
Northmarq secured the bridge loan on behalf of Eleos Ventures, structured as a bridge to sale ahead of the property’s acquisition by a nonprofit affordable housing operator under California’s Project Homekey program. The bridge loan delivers capital to the sponsor at certificate of occupancy, with the active sale to the nonprofit acquirer proceeding in parallel.
“Bridge to sale executions are inherently complex, and layering in a Project Homekey-funded acquisition while the property was still completing construction made this one particularly intricate,” said Penini. “The buyer’s Homekey award reflects how strongly the state believes in this project, and the bridge lender’s willingness to underwrite around the active disposition is what made the timing work. We appreciate the sponsor’s faith in us to deliver a solution at certificate of occupancy and a turn-key handoff into long-term affordable housing for South Los Angeles.”
The project is among the first turn-key delivers under the Homekey program, which has historically funded heavy renovation conversions or ground-up construction. Closing the bridge loan required close alignment between Northmarq, the sponsor, and the bridge lender to underwrite multiple moving parts simultaneously — including the pending Homekey-funded sale while still under construction.
Upon transition to nonprofit ownership, the property will operate as permanent supportive housing for formerly homeless individuals referred through the Los Angeles County Department of Health Services.
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Northmarq is one of the largest privately held commercial real estate firms in the United States, combining a nationwide presence with deep local expertise. With more than 50 offices across the country, we provide a full suite of debt, equity, investment sales, loan servicing and fund management solutions for a comprehensive range of property types. Our unique structure allows us to connect clients with the best opportunities, yet be nimble enough to ensure access to every expert across our company. The firm manages a loan servicing portfolio of over $80 billion and has completed $91.3 billion in transactions over the past fours years. At Northmarq, collaboration fuels results, helping clients achieve success in every market, nationwide.
