Elk Development owes about $60 million on Hollywood apartments, according to two notices of default dated early June.
Acres Capital loaned Elk around $41 million via a construction note five years ago. The note was amended and increased to $44 million. The loan was later sold, and now the current noteholder, who claims Elk defaulted on the debt, initiated foreclosure. The noteholder, a limited liability company called Wolverine Land Holdings, seems to be connected to Prime and Killian Construction — neither immediately returned requests for comment. Acres confirmed it sold the note. Elk founder and CEO Evan Kasper declined to comment.
His firm developed the six-story building called Miles at Highland, which holds 180 so-called micro-units and ground-floor retail at 1410 North Highland Avenue. This isn’t the first time the company has been accused of owing money on the Hollywood real estate. Its general contractor sued in 2023, claiming the company failed to pay about $6 million for labor, services and materials used for the development.
“The defendants have failed and refused, and still fail and refuse, to pay the outstanding balance,” the general contractor said at the time. Angeles Contractor and Elk are still in litigation.
Separately, there have been some notable apartment deals in Hollywood recently. The Angela Aman-helmed Kilroy Realty sold two luxe apartment towers for around $200 million to Advanced Real Estate earlier this year. The towers were Columbia Square Living, which has 200 apartments and is at 1550 North El Centro Avenue, and Jardine, which has 193 apartments and is at 6390 DeLongpre Avenue.
And last year, the Lighthouse Group purchased its second Hollywood apartment complex for about $74 million — and AEW Capital Management purchased area apartments for $159 million.
Elk’s Hollywood co-living and micro-units aren’t your typical apartment set up — they’re basically mini studios with shared living spaces — but a recent CBRE report puts the vacancy rate for Hollywood multifamily at 5.5 percent and the average rent per unit per month at almost $3,000. Elk, per its website, has properties in Koreatown, too.
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Development
Los Angeles
ELK Development owes $6M to contractor for Hollywood apartment project, lawsuit alleges
Commercial
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Kilroy sells Hollywood apartment towers for $200M-plus