CA Luxury Asset Lands $32M

HFF arranged the 10-year, floating-rate Freddie Mac loan for Chelsea Santa Monica on behalf of Kort & Scott Financial Group.
Chelsea Santa Monica
Chelsea Santa Monica

HFF has arranged $31.5 million in financing for Chelsea Santa Monica, a 53-unit luxury community in Santa Monica, Calif. The HFF team worked on behalf of the borrower, Kort & Scott Financial Group, to place the 10-year floating-rate loan with Freddie Mac’s CME Program.

Located at 1318 Second St., the property is a transit-oriented community and is steps from the Third Street Promenade, Santa Monica Place, various dining and entertainment options, as well as the beachfront.

Luxurious features

Chelsea Santa Monica comprises studios, one- and two-bedroom units, averaging 631 square feet. Apartments feature Viking and Frigidaire stainless steel appliances, full-size washers and dryers, white quartz countertops, fired oak finish cabinetry, Nest thermostats, filtered drinking water dispensers and Nuvo media streaming devices paired with Harman Kardon speakers. Additionally, the development is LEED Gold-certified.

Completed in 2016, the property’s residential units are 95 percent leased. The four-story building includes 5,988 square feet of commercial space, which is 100 percent occupied. Tenants include Uovo Pasta, HiHo Cheeseburger and CAVA Mezze Grill.

HFF’s Senior Director Zach Koucos and Director Lee Redmond arranged the loan for the property. The team also arranged a $55 million Freddie Mac loan for Wilshire Valencia, a 218-unit apartment community in downtown Los Angeles, completed at the beginning of the year.

Image courtesy of Yardi Matrix