Inside the Deal: Shore: The Largest HUD Financed Project in LA
- Sep 05, 2012
Marina del Rey, Calif.—The $125 million Federal Housing Administration (FHA)-insured loan provided for the 544-unit Shores in Marina del Rey is the largest Section 221(d)(4) completed in the history of the Los Angeles Department of Housing and Urban Development (HUD) office.
The financing, provided by Red Mortgage Capital LLC, supplies non-recourse, 42-year term combined construction and permanent financing for the property. Shores is a joint venture between the developer, Del Rey Shores LLC (composed of Jerry B. Epstein and a Kirk Douglas family investment entity) and Guardian Life Insurance Co. of America. The Jerry B. Epstein Management Co. will manage the project.
Shores, which will be a Class A multifamily community, will replace an older, existing 202-unit apartment complex developed in the 1960s by Epstein, who is the only original pioneer of Marina del Rey (the largest pleasure boat harbor community in the U.S.) still living. The property will also provide workforce housing, according to a press release.
Designed by Nadel Architects, Shores—a 12-building complex—is just a stroll away from both the beach and the marina docks. The County of Los Angeles, which owns and manages Marina del Rey along with Epstein of Del Rey Shores LLC, envisioned the need for renovation and redevelopment to meet the demand for new, quality, higher-density contemporary apartment living near the ocean.
Nadel Project Director Dale Yonkin says, “We found a way to incorporate modern, nautical and California themes into a design that still focuses on functionality and efficiency. It provides the maximum amount of space for each living area while keeping a high quantity of units at variable sizes to ensure rents remain in reach for a larger percentage of residents.”
Nadel is also working on two other projects in Marina Del Rey and currently has over 5,000 dwelling units on the boards.