AvalonBay secures $167M loan for Arts District resi project

Bank of America led syndicate on financing of 475-unit development

Los Angeles /
Oct.October 06, 2020 11:00 AM
Tim Naughton and a rendering of the project (Credit: OFFICEUNTITLED and  AvalonBay)
Tim Naughton and a rendering of the project (Credit: OFFICEUNTITLED and AvalonBay)

AvalonBay Communities has secured $167 million in construction financing for its 475-unit mixed-use development in the Arts District.

The loan came from a syndicate of banks led by Bank of America, according to the Los Angeles Business Journal.

The AVA Arts District project is set to rise on a 3.75-acre site at 668 South Alameda Street. It will have 60,000 square feet of commercial space along with its rental units. The Los Angeles City Council approved the project in 2018.

Cushman & Wakefield’s Rob Rubano arranged the loan, according to the report. AvalonBay started setting up the financing before the pandemic hit, and the loan ended up getting delayed three months, he said.

“Had we not started it pre-Covid, we would probably still be working on it,” he told the outlet.

Nationwide, the pandemic caused lenders and developers to slam the brakes on much of their activity in the early months. But some of that picked up in the second quarter, with domestic banks providing $380 billion in construction loans from April through June. Most of that went to large commercial projects.

Most projects that break ground this year will take at least a couple of years to deliver, including AVA Arts District, which is slated for completion in 2022. [LABJ]Dennis Lynch 


Related Articles

arrow_forward_ios
Gov. Gavin Newsom (Getty, iStock)
Newsom’s $12B plan for homeless would build 45K homes
Newsom’s $12B plan for homeless would build 45K homes
(iStock)
Hard-hit LA restaurants get some Covid relief cash
Hard-hit LA restaurants get some Covid relief cash
Governor Gavin Newsom (Getty, iStock)
State pitches $5.2B program to cover back rent
State pitches $5.2B program to cover back rent
Theaters can now operate at 50% capacity (Getty)
In (LA) theaters now: More people
In (LA) theaters now: More people
Relevant Group’s Grant King and Richard Heyman with the Thompson and Tommie hotels (Relevant Group)
Relevant Group lands “rescue” financing for 2 boutique hotel projects
Relevant Group lands “rescue” financing for 2 boutique hotel projects
Continuum Partners CEO Mark Falcone and the development site (Continuum, iStock, Google Maps)
Continuum Partners plans $2B megaproject to transform Arts District
Continuum Partners plans $2B megaproject to transform Arts District
Judge David O. Carter (Getty)
Judge orders city, county to house Skid Row residents by fall
Judge orders city, county to house Skid Row residents by fall
(Getty, iStock)
LA’s office market hasn’t even started to recover
LA’s office market hasn’t even started to recover
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...