CGI Strategies has secured a $41.5 million mortgage on a recently completed 122-unit apartment complex in Koreatown.
CBRE Global Investors provided the floating-rate loan, according to the Commercial Observer. It has a three-year term with the option to tack on two more.
CGI finished the project, called Mariposa on 3rd, at 269 S. Mariposa Avenue last year. CBRE’s Charles Kim said the building is “nearly 90 percent occupied.”
The firm has a handful of other Koreatown projects under construction or completed. In late 2019, CGI sold a 60-unit apartment complex to Alhambra Place Partnership for just under $30 million.
The firm is also building a 200-unit, two-building complex further south, on Mariposa and Fedora streets, with the help of a $47.8 million construction loan from Dekel Capital.
Early in the pandemic, there was concern that the Koreatown rental market would fall out from under developers and landlords. However, new projects continue to roll in, a sign that developers believe the market will recover by the time they open.
The pandemic did appear to affect some property owners. The California Market retail complex sold at a bankruptcy auction in December for $58 million.
[CO] — Dennis Lynch