Northmarq arranges $13.8M construction loan for Los Angeles multifamily development

LOS ANGELES — Juda Penini, vice president of Debt + Equity in Northmarq’s Los Angeles office, successfully secured the new construction financing for a 100% affordable-housing project in Los Angeles. The project, entitled under the Los Angeles ED1 measure, will feature 84 affordable units upon completion.

Northmarq arranged the loan on behalf of the borrower through a correspondent relationship with a mission-driven lender. The transaction was structured on a 36-month term at 75% LTC/55% LTV.

“This transaction reflects the delivery of much-needed multifamily housing in Los Angeles and underscores the value of aligning the right capital with well-conceived infill projects,” said Penini. “By running a highly competitive process among multiple lenders, we were able to secure attractive economics and a structure that reduced recourse for the sponsor, while positioning the project for a smooth construction phase and long-term stability.”

The property is located in South Los Angeles and represents a targeted infill development within a submarket seeing continued investment activity. The project was structured with a focus on execution certainty and cost discipline in light of current construction and capital-markets conditions.