Northmarq’s Los Angeles and San Diego offices secure $23,660,000 construction loan for Koreatown Apartments

SAN DIEGO, CALIFORNIA (January 17, 2023) – Zalmi Klyne, managing director of NorthMarq’s Los Angeles office and Conor Freeman, vice president NorthMarq’s San Diego office, collaborated to secure a $23.66 million loan for a 53-unit multifamily project located in the Koreatown neighborhood of Los Angeles. Northmarq arranged financing for the borrower through its relationship with a debt fund.

The project is a Class-A infill apartment project slated for completion in early 2024. The six-story community will be a mix of one, two, three and four-bedroom floorplans, averaging 1,083 square feet. The borrower secured approvals using Transit Oriented Community incentives to allow for more units by setting aside six units for affordable housing.

“Despite the recent rise in interest rates, which has forced many lenders to the sidelines, we were able to meet the sponsorship’s objectives by providing a 30-month term at 79 percent Loan-to-Cost,” explained Klyne. “The non-recourse loan features a current pay and accrual structure to minimize the interest reserve and will replace three single family homes with much needed density in the Koreatown submarket.”