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
Rendering of Onni Group's Arts District project
Onni Group’s Arts District tower project clears key hurdle
Onni Group’s Arts District tower project clears key hurdle
Opponents say the restriction will cause an increase in construction costs. (Getty)
LA explores more restrictions on large wood-frame projects
LA explores more restrictions on large wood-frame projects
(iStock/Illustration by Alexis Manrodt for The Real Deal)
Some LA landlords tap savings, may sell properties to stay afloat
Some LA landlords tap savings, may sell properties to stay afloat
(iStock)
LA office market has 51M sf of available space
LA office market has 51M sf of available space
More new construction office space is coming online this year in LA than any other US market. (Getty)
LA expects 7M sf of new office space delivered in 2021. That’s a problem
LA expects 7M sf of new office space delivered in 2021. That’s a problem
Illustration of the Hollywood Bowl (Getty)
California sets stage for more (re)openings
California sets stage for more (re)openings
Mayor Eric Garcetti (Getty, iStock)
LA’s $235M rent relief program goes live March 30
LA’s $235M rent relief program goes live March 30
925 N. La Brea Avenue with CIM Group’s Shaul Kuba and WeWork’s Sandeep Mathrani (Google Maps, Getty/Illustration by Alexis Manrodt for The Real Deal)
WeWork exits CIM Group’s Hollywood complex
WeWork exits CIM Group’s Hollywood complex
arrow_forward_ios

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

Loading...