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ELK Development-tied entity plans 80-unit apartment complex in Koreatown
The rental housing builder will seek to utilize city and federal tax incentives for market-rate project
An entity tied to rental housing builder ELK Development is planning an 80-unit apartment building in Koreatown.
The seven-story project, which is eligible for city and federal incentives, would rise at 730 S. Vermont Avenue, property records show. ELK acquired the site for $10.2 million earlier this year and took out an $8.2 million loan with MRV Banks.
The site is eligible for both the city’s Transit Oriented Communities entitlements and funding through the federal Opportunity Zones program, and it appears ELK looks to take advantage of both.
A representative for ELK could not be immediately reached for comment. The company, founded by Evan Kasper, focuses on micro housing and furnished apartment units, according to its website.
Los Angeles’ TOC program provides a package of entitlements such as a density bonus and open space reductions for projects near transit that set aside a percentage of units for affordable housing.
The program is popular with developers and a number of TOC projects have been proposed in recent weeks. Canfield is looking to use the program for an 85-unit development in East Hollywood. Last week, Bow West filed for a 200-unit tower in Hollywood that qualifies for TOC incentives.
The Opportunity Zones program essentially allows investors to defer and reduce capital gains taxes on their long-term real estate investments. The program was designed to lure investors and developers to distressed areas across the country.
The LLC registered to the Vermont Avenue project is 730 Vermont Venture, which is managed by an Elk OZ Fund III, suggesting that Opportunity Zones funding is targeted.