Leap of Faith Partners is bringing its modular construction methods to Ventura, Calif., after securing construction financing for its 125-unit mixed-use project. Tauro Capital Advisors Inc. negotiated the $52.4 million loan on behalf of Leap of Faith Partners, which placed $14.5 million in common equity for the modular construction of its Ventura project.
Tauro Capital Advisors’ Matt Bucaro said in prepared remarks that an initial LP investor backed out of Leap of Faith Partners’ project, so Tauro Capital Advisors was tasked with finding a financing solution. A senior lender is providing $30 million, while StoneHill provided $22.4 million in C-PACE financing on a 24-month term.
The mixed-use development will offer one-, two- and three-bedroom units, nine of which are expected to be designated as affordable. The community will also have 10,000 square feet of commercial space that’s expected to accommodate four tenants. The project is located on a 6-acre site at 2055 N. Ventura Ave.
The developer tapped KRDB as the project architect, and it will be the fifth development that the two companies have worked together on. According to Leap of Faith Partners, the project is in the final stages of entitlement and the developer will break ground in the third quarter of this year. Leap of Faith Partners is expected to complete the community by the first quarter of 2024, Bucaro told Multi-Housing News.
Ongoing growth in Ventura
According to Matthews’ second-quarter multifamily market report for Ventura, the market has seen an increase in demand in the last 12 months, causing a tightening vacancy rate, strong rent growth and some interest from developers. Ventura’s vacancy rate was at five percent during the first quarter of 2022 and is expected to decrease, while the year-over-year rent growth was at 9.5 percent and much higher than the expected long-term average of 5.3 percent.
The report also noted that while construction in Ventura has been slow in the past decade, it’s expected to increase, with more delivery of communities expected this year with three projects totaling 183 units in the pipeline.
As for Leap of Faith Partners, the developer has completed and sold 17 buildings in Los Angeles in the last five years. Including its Ventura project, Leap of Faith Partners is currently developing 132 units in California.