AvalonBay Communities has secured $ 167 million in funding to build its 475-unit mixed-use development in the Arts District.
The loan came from a syndicate of banks led by Bank of America, according to the Los Angeles Business Journal.
The AVA Arts District project is expected to develop on a 3.75 acre site at 668 South Alameda Street. It will have 60,000 square feet of commercial space as well as its rental units. Los Angeles City Council approved the project in 2018.
Rob Rubano of Cushman & Wakefield arranged the loan, according to the report. AvalonBay started putting the financing in place before the pandemic hit, and the loan ended up being delayed for three months, he said.
“If we hadn’t started it before Covid, we would probably still be working on it,” he told the outlet.
Nationally, the pandemic caused lenders and developers to curb much of their business in the first few months. But part of that rise accelerated in the second quarter, with domestic banks providing 380 billion dollars on construction loans from April to June. Most of this money was spent on large commercial projects.
Most of the projects launched this year will take at least a few years to deliver, including AVA Arts District, which is slated for completion in 2022. [LABJ] – Denis lynch