Valley of the Dollars: Square Mile provides $82M loan on Reseda project
Gelt and Uhon Inc. will build 250-unit apartment complex
Square Mile Capital provided an $82.2 million construction loan to the developers of a planned 250-unit apartment building in Reseda.
The borrowers, Gelt and Uhon Inc., intend to build the complex at 6625 Reseda Boulevard in the San Fernando Valley, Square Mile said.
While there won’t quite be a freeway running through the yard — to steal a line from Tom Petty — the 109,000-square-foot Reseda site does sit at the intersection of the 405 and 101 highways.
Countywide, apartment construction loans have been increasingly difficult to lock down during the pandemic. This week, WSC Communities said it was looking to sell off 23 different mixed-use sites in Santa Monica — to build up to 2,100 units — citing difficulty obtaining the necessary financing.
Square Mile has been a relatively active lender during the pandemic. The firm recently provided a $211 million loan on an apartment building in Southwest Washington, D.C.
Multifamily sales activity in L.A. County has slowed this year. The five largest investment sales involving apartment developments totaled $646 million, less than half the amount of 2019.
Tarzana-based Gelt — led by Steve and Keith Wasserman — picked up several properties in the San Fernando Valley in the last few years. In early January, the company announced plans to significantly expand its multifamily holdings in Southern California, along with six states across the Western U.S.
Uhon, a private equity firm tied to China homebuilder Shenzhen Yuhong, has a portfolio of at least nine multifamily buildings in Southern California, according to its website.