CLG Lands $85M Recap for 2 Los Angeles Communities
Mesa West Capital provided the financing for the properties in West Hollywood and Brentwood.
California Landmark Group has secured a $84.8 million loan that will refinance two of its Los Angeles communities. Mesa West Capital provided the financing to CLG, who developed the pair of luxury apartment communities in 2014.
CLG built The HW as a low-rise courtyard building on Hollywood Avenue in Los Angeles’ West Hollywood submarket. The 79-unit community offers one- and two-bedroom floorplans that range in size from 698 to 1,360 square feet. The units were built with 10-foot ceilings and a full-size washer and dryer, while the community offers a rooftop deck, screening room, pool and spa, and a cardio and weight center.
Located in Los Angeles’ Brentwood neighborhood, The BW is a mid-rise apartment community with 78 units in one-, two- and three-bedroom floorplans. The community’s amenities include a rooftop lounge with outdoor kitchen, grilling pavilion, 24-hour cardio and weight studio and ground-floor restaurant.
Josh Westerberg, executive director at Mesa West Capital, said in prepared remarks that the two communities were located in pockets of Los Angeles that are seeing high renter demand. Westerberg added in his prepared statement that most of the properties in these submarkets are older, allowing CLG’s communities to stand out as higher-quality options.
LOS ANGELES BACK ON THE RISE
Beyond these two communities, CLG has also developed several other residential properties in various Los Angeles submarkets, including in Larchmont Village, Century City and Culver City. The developer also recently completed its mixed-use project in Los Angeles’ Marina del Ray neighborhood, mixing 228 rental units with 25,000 square feet of creative office space.
The demand for the overall Los Angeles area can be seen with its tightening vacancy rate and growing asking rents. According to a third quarter report from Northmarq, the city’s multifamily market saw its vacancy rate drop 40 basis points to 4.1 percent. The market also saw asking rents increase 4.6 percent to $2,106 per month, with momentum expected to continue in the next few quarters.