San Francisco-based apartment owner Prime Residential has secured a huge refinancing for California’s largest residential complex, potentially paving the way for the addition of granny flats in high-rise and garden-style apartment buildings.
The firm provided a $947 million loan for Park La Brea, a 4,249-unit apartment complex on Wilshire Boulevard about seven miles west of downtown Los Angeles. ) north of the Miracle Mile area. The project covers an area of 144 acres and consists of 18 high-rise buildings and 175 garden-style apartment buildings.
A new mortgage can pay off existing debt on the property. Lender Freddie Mac is expected to securitize the loan through a K-Deal, a portfolio of multifamily commercial mortgage-backed securities (CMBS). Newmarket’s Mitch Clarfield, Ramsey Daya, Chris Moritz and Alec Newman represented Prime Residential in the transaction.
“La Brea Park, the largest residential community west of the Mississippi River, is an iconic Los Angeles asset. This is a historic financing that incorporates a variety of bespoke features, including the flexibility to build a large number of Accessory Dwelling Units (ADUs) on the property , which will help address the state’s housing and affordability crisis,” Clarfield said in a statement.
Park La Brea was originally owned by MetLife and the complex was built from 1941 to 1950. Prime purchased the property at 6200 West Third Street in 1995. According to previous reports in the Los Angeles Times, the planning process for the complex began in the 1930s. A post-World War II housing shortage prompted developers to add 13 stories to the site’s plans.
The property was in the news early in the COVID-19 outbreak, as its approximately 10,000 residents found it difficult to adhere to social distancing guidelines.
