Jannone Development is preparing to turn an apartment complex in Koreatown into condominiums.
The Los Angeles-based developer secured a $20 million refinancing loan from JLL for The Secret, a 39-unit multifamily property built last year, L.A. Business First reported.
The property at 3050 West 11th Street was initially designed as for-sale condominiums but pivoted to apartments during construction. The building hosts a combination of one-, two- and three-bedroom units across more than 46,500 square feet. Jannone will now move to return to its original plan.
Jannone looks to complete the apartment-to-condo conversion and sales process over the next 18 to 24 months, per Business First. In locking down the financing, the developer is “perfectly positioned to meet the growing demand for ownership opportunities” in Koreatown, according to JLL’s Chris Collins, who represented the borrower.
Koreatown is quickly becoming a go-to destination for property buyers in Los Angeles.
The ZIP code 90020 in the L.A. enclave was the hottest housing market in the city in the second quarter, according to Business First. The average sale price was $2.2 million with 62 new listings hitting the market last quarter. Another Koreatown ZIP code, 90004, rounded out the top five hottest markets in Greater L.A. alongside parts of Newport Beach and Silverado.
Elsewhere in Koreatown, other use conversions and multifamily redevelopment projects have moved forward in recent months.
Last month, Jamison Properties filed plans to convert a 20-story office building at 3550 Wilshire Boulevard into 495 apartments. That project follows Jamison’s similar adaptive reuse endeavors at 3325 Wilshire and a two-tower high-rise complex at 3600 Wilshire. In 2023, the developer filed plans to convert a 17-story office tower at 6380 Wilshire into 210 apartments.
In June, Barkley Development filed an application to turn 412 South Catalina Street into a six-story, 53-unit apartment building with a 22-car garage. That project would be an extension of a similar redevelopment next door at 400 South Catalina Street completed in 2019, which turned two smaller apartment buildings into a 61-unit property with a gym, roof deck and subterranean parking.