CLG Lands $25M Refi for West LA Asset
The funds will retire the property's construction financing.
Developer California Landmark Group has secured a $25.4 million loan for the refinancing of SW by CLG, an 88-unit multifamily community in Los Angeles. State Farm provided the five-year, fixed-rate note with interest-only terms and flexible pre-payment penalty. Working on behalf of the borrower, Gantry arranged the financing that retires the $25 million construction loan originated in 2017 by Banc of California, according to Yardi Matrix data.
Completed in 2020, the Class A four-story building comprises studio, one- and two-bedroom floorplans ranging from 329 to 1,043 square feet, as well as 7,700 square feet of ground-floor retail space occupied by five restaurants. Of the total, 10 units are designated as affordable.
Residences feature in-unit washers and dryers, and private balconies for select layouts. Common-area amenities include a fitness center, a rooftop dipping pool and outdoor grilling and dining areas.
Located at 1947 Sawtelle Blvd., in West Los Angeles’ Japantown neighborhood, SW by CLG is off Interstate 405 and roughly 14 miles from the city’s downtown. The property is also 4 miles from The Getty and some 10 miles from LAX, as well as 2 miles from the Santa Monica Airport.
Gantry Principal Andy Bratt along with Associate Sean Kuang represented the borrower in the transaction. In prepared remarks, Bratt mentioned that the loan’s terms were calculated in anticipation of a potential lower interest rate climate.
Los Angeles’ multifamily market
The Los Angeles multifamily market has been strongly impacted by the economic slowdown, as year-over-year through September 2023, rents grew only 0.2 percent, below the national figure of 0.8 percent, according to a recent Yardi Matrix report. The average rate in the metro however was $2,592, more than 50 percent above the U.S. rate of $1,722.
Development carried on at a steady pace, with 32,951 units underway across the market as of September, the same report shows. Through the first three quarters of last year, developers added 6,277 units to the metro’s inventory.
