Exclusive: Irvine Co. Gets $157M Loan in LA
The community is part of a 6,000-unit master-planned neighborhood.
Irvine Co. has secured a $157.2 million Fannie Mae refinancing loan for Villas at Playa Vista – Montecito, a 309-unit luxury property in Los Angeles’ Playa Vista, Calif., according to Yardi Matrix. Capital One originated the debt, which retires a previous $136 million Fannie Mae note from PGIM. The community debuted in 2016.
Prior to the property’s development, Brookfield had owned the land, which it sold to Irvine Co. in 2015. The firm bought a wider parcel, on which it developed Montecito, alongside two additional communities, the 703-unit Sausalito and the 491-unit Malibu.
Montecito encompasses one- and two-bedroom layouts that average 1,113 square feet. Community amenities include a swimming pool, a dining room, workspace and conference rooms, a gym, as well as EV chargers, among other features.
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Located at 12855 Runway Road, the property is near several employers, such as Tencent, Loyola Marymount University, as well as a subsidiary of Sony Interactive Entertainment and spacecraft manufacturer Apex. The Ballona Wetlands Ecological Reserve and Playa Del Rey beach are within roughly 2 miles.
The multifamily scene of LA’s Playa Vista neighborhood
Montecito, Sausalito and Malibu are within the 460-acre master-planned development Playa Vista, which used to house the former headquarters of Howard Hughes’ aerospace company. The area was repositioned to include 6,046 residential units and roughly 3 million square feet of office, as well as more than 200,000 square feet of retail space.
Some of the largest apartment owners in the U.S. are present in the neighborhood, including Essex Property Trust, which owns the 705-unit Fountain Park, as well as Vivmark Residential, the owner of the 309-unit Avalon Playa Vista. (Vivmark Residential is the entity resulting from the merger between AvalanBay and Equity Residential earlier this year.)
Large companies entering the neighborhood also include Hines. Last year, the firm paid $403.7 million for the 420-unit Runway Living and the 220,000-square-foot Runway Playa Vista shopping center, just across the street from Irvine Co.’s Montecito. Invesco divested the assets after acquiring them for $472.1 million in 2016, reflecting an ongoing repricing trend sweeping the market. Just this month, Blackstone sold Violet on Virgil for $60 million, marking a one-third discount compared to the property’s 2018 price tag.
