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EGC Real Estate scores $22M bridge loan for Koreatown apartments
Short-term financing to help newly built project start leasing until interest rates decline
EGC Real Estate has scored a $22 million bridge loan from Beverly Hills-based lender Bolour to help recapitalize a 67-unit apartment complex in Koreatown.
Priority Capital Advisory, run by Zachary Streit, arranged the financing for Kanvas, the name of the multifamily property at 905 South Vermont Avenue, and announced the deal on Thursday. Terms of the deal were not disclosed.
EGC completed the project in the first quarter, but was looking for an “interim, shorter-term financing solution,” Streit said in a statement.
The funding will help keep the project afloat until ECG can score long-term financing, and help ECG start leasing.
Many multifamily owners are tapping into short-term, bridge financing as a way to weather through this high interest-rate period, rather than locking in longer-term financing while rates are high, according to multifamily brokers and investors.
EGC, run by Ron Gonen, bought the site for $2.35 million in 2015, records show. No loan was recorded in connection with the acquisition or construction.
The property includes 13 studios, 33 one-bedroom units and 21 two-bedrooms. Seven of the units are classified as affordable.
Rents at the complex range from $1,971 a month for a studio to $4,000 for a two-bedroom, according to online listings.
The average asking rent for a one-bedroom apartment in the Wilshire Center-Koreatown market was $1,995 a month in May, down 9 percent from a year ago, according to Zumper data. The market has become a hotbed for multifamily development as the zoning helps developers build a lot of units, with three substantial projects on a single street.