Housing Diversity has secured $34.2 million in financing for a nearly completed, 147-unit “micro apartment” complex in Downtown Los Angeles.
The Seattle-based developer landed the loan to complete the eight-story Vida DTLA at 1317 South Grand Avenue, in South Park, the Commercial Observer reported. The apartments are set to open March 28.
The company announced it received a $22.6 million loan from United Way of Greater L.A. and a $11.6 million equity investment through Pinnacle Partners for sponsor OZ Navigator, a partnership between Housing Diversity and Nitze-Stagen, based in Seattle.
The financing package comes two weeks after Housing Diversity announced a $48.5 million financing package for a nearly completed Liv DTLA, a 227-unit, eight-story micro complex at 1411 South Flower Street, around the corner from Vida DTLA.
That package included a $34.9 million loan from United Way of Greater L.A. and a $13.6 million equity investment from Arctaris Impact Investors, based in Boston.
The Grand Avenue complex includes a 68,500-square-foot building on a fifth-acre lot with 147 studio apartments averaging 325 square feet. The white building will include black balconies and large, floor-to-ceiling windows, according to a rendering.
The for-profit developer employed Transit Oriented Communities incentives to build a larger building than permitted by zoning rules in exchange for 17 affordable apartments set aside for extremely low-income households.
Vida DTLA will contain 88 market-rate units with rents set at what’s deemed affordable for those earning below 120 percent of area median income. Housing Diversity earlier predicted likely rent at around $1,600 a month.
The project also taps into federal Opportunity Zone tax breaks, which allow investors to defer taxes on capital gains. Some 42 units are projected to accept federal housing choice vouchers.
Elsewhere, the Seattle-based team filed plans in late 2021 to build an eight-story, 92-unit micro apartment building at 603 South Mariposa Avenue in Koreatown.
Housing Diversity is also building an eight-story micro apartment building at 1621 North McCadden Place in Hollywood. Plans call for 69 studio apartments that average 375 square feet and likely rent for around $2,000.
— Dana Bartholomew
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