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Trammell Crow scores $200M for Long Beach multifamily project
Kennedy Wilson’s $166M loan, plus $34M mezzanine debt, will fund construction
Trammell Crow Residential has scored a $200 million financing package to build a 600-unit complex in Long Beach.
Kennedy Wilson provided a $166 million construction loan for the project, located at 600 West Broadway, while a national life insurance firm handed out a $34 million mezzanine loan.
CBRE announced the financing on Monday, but declined to name the mezzanine lender and did not disclose financing terms.
Trammell Crow bought the 6-acre plot of land for the development for $29.5 million from the Port of Long Beach in 2022, according to property records. San Diego-based R&V Management will manage the residential property.
Kennedy Wilson, based in Beverly Hills, is one of the few active construction lenders in Southern California and has more flexibility than regional or national banks in providing loan modifications.
On an earnings call in November, CEO Bill McMorrow said the investment company was looking to push further into the loan business and take advantage of opportunities that come from “market dislocations.”
In June, the firm teamed up with Fairfax Financial to buy more than $2 billion worth of construction loans from Pacific Western Bank at a roughly 9 percent discount. Kennedy Wilson holds a 5 percent stake in those loans.
The Long Beach project will have a mix of one-, two- and three-bedroom units, averaging 767 square feet in size.
Long Beach has encouraged a building spree over the last decade, in sharp contrast to other Southern California cities that have been reluctant or slow to add more housing.
Over those 10 years, the city has approved more than 5,000 units in its downtown area alone, TRD previously reported.
This story has been corrected to state that Kennedy Wilson acquired more than $2 billion worth of construction loans from Pacific Western at a roughly 9 percent discount.