Family Development, the home building partner of Advent Property Holdings, LLC. with offices in Palm Desert, Ca., has obtained $14.8 million in AD&C financing to acquire and develop an approximately 0.81-acre assemblage and construct 24 single-family detached units located at the southeast corner of Lexington Avenue and Orange Drive in West Hollywood, according to Landmark Capital Advisors, which assembled the financing package.
The site is in the heart of West Hollywood’s entertainment district, within walking distance to shops and restaurants. It is also easily accessible to major freeways and employment centers located throughout the Los Angeles area. The target buyer profiles for the 24 units include single or married, upwardly mobile millennials, as well as young, empty-nesters. Similarly priced and positioned new home ventures in the area have experienced quick sell-outs as demand for new for-sale product is at a historic high, and inventory is low to non-existent.
“The subject property represents a rare single family residential production opportunity at a superior Los Angeles infill location,” said Adam Deermount, a Landmark managing director who worked on the financing package. “Despite the excellent location and experienced developer, the deal structure was challenging. Equity was in the form of a secured second deed of trust, which many banks will not allow on a construction loan, as they interpret it as a violation of the HVCRE regulations. We reached out to one of our capital providers we know to be comfortable with the West Hollywood market and the unique deal structure.”
Founded in 2011, Landmark raises real estate capital through institutional, private, and family office investors to finance a wide array of real estate projects.