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Saman Kerendian’s Kian Investment lands $24M loan for 136 affordable units in Koreatown
Kian using Mayor’s ED1 to fast-track affordable housing development
Kian Investment has scored $24.4 million in financing to build a 136-unit affordable housing complex in Koreatown.
The entity controlled by West Los Angeles-based Keren Management and led by Saman Kerendian landed the loan to build the seven-story building at 926-938 South Kingsley Drive, the Commercial Observer reported.
The developer will bulldoze two California bungalows built in 1912 at the northeast corner of Kingsley and San Marino Street.
Kian obtained the $24.4 million, 30-month loan from Culver City-based nonprofit Century Housing, which comes with optional extensions and an interest rate equal to the secured overnight financing rate plus 2.41 percent.
As of June 4, SOFR was 5.33 percent, meaning the loan currently has a rate of 7.74 percent.
This month, Kerendian plans to break ground this month on the 72,800-square-foot building, which will have 136 studio and one-bedroom apartments for households earning 80 percent of area median income.
Initial plans filed in 2021 called for a 110,000-square-foot building with 89 apartments, according to What Now Los Angeles.
Kian employed Mayor Karen Bass’s Executive Directive 1, which fast-tracks the approval and permitting for 100-percent affordable housing projects to speed up affordable housing development.
Brokers Jonathan Lee, Shahin Yazdi, William Hyatt and Tommy Adelson of the Structured Finance Group at Colliers Mortgage arranged the financing.
“Since ED 1 is a relatively new initiative, many lenders have not yet fully evaluated the product to offer competitive terms,” Lee said in a statement. “Throughout this process, several banks considered ED 1 to be ‘too early,’ or offered terms in the 50-60 percent [loan-to-cost] range.
“Ultimately, we found a lender who understood the program and provided competitive terms and leverage.”
— Dana Bartholomew
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