ACRES Originates $41.1M Loan for Hollywood, L.A. Micro-Unit Multifamily ProjectAPRIL 23, 2021
LOS ANGELES – (April 23, 2021) – ACRES Capital Corp. (together with its subsidiaries, “ACRES”), a leading commercial real estate middle-market lender, has originated, through the YazLee Group of George Smith Partners, a $41.1 million loan to fund the construction and stabilization of 1410 Highland (the “Property”), a six-story, micro-unit multifamily and retail project located at 1410 N. Highland Avenue in the desirable and historic Hollywood neighborhood of Los Angeles, California.
The loan is provided to sponsors ELK Development, a vertically integrated, Los Angeles-based real estate development firm specializing in the design, development, construction, and operations of micro, traditional and furnished rental housing; and Sixty West, a real estate investment firm with a diverse portfolio that has undertaken more than 150 projects.
“Hollywood is globally recognized as the center of the entertainment industry, but historically has lacked quality multifamily housing,” said ACRES Chief Executive Officer and President Mark Fogel. “With the thousands of class-A housing units and community-serving retail storefronts recently added to the neighborhood, the area is fast becoming a true “live-work-play” environment for its growing population of young professionals. 1410 Highland’s micro-units will provide residents with a new housing option that is affordable while featuring high-end finishes and amenities.”
1410 Highland will contain 180 micro-units grouped into 49 pods, along with 96 parking spaces and nearly 800 square feet of retail space. Each unit will be fully furnished, allowing for quick and seamless moves for residents. The unit mix will include three-, four-, five- and six-bedroom micro-suite selections, with an average size of approximately 1,000 square feet. Furnishings will include a murphy bed/sofa, table, wall-mounted TV, wardrobe, wet or dry bar with personal refrigerator, cabinetry (in addition to a shared kitchen), chairs and soft goods. Other amenities at the Property will include a two-level parking garage with automated lift system, community area, fitness room, common area courtyard, rooftop deck, spa, dog run and bike storage.
Evan Kasper, Founder and CEO of ELK Development, stated, “The ACRES team and broker George Smith Partners both share our vision to serve the transforming Hollywood submarket with a multifamily property in 1410 Highland that is both aspirational and affordable. ACRES’ financing will allow us to see our business plan through to completion, providing unprecedented freedom and flexibility for urban renters.”
1410 Highland resides within proximity to major employers in the area, which include a variety of media, tech, and entertainment-industry institutions. In addition to its employment base of major and independent studios, television stations, radio stations, record companies and post-production shops, Hollywood is also a strategic central location for entertainment organizations throughout the Westside and San Fernando Valley markets. Hollywood is currently experiencing a wave of redevelopment featuring significant expansions in housing, retail, hospitality, recreation, and transit, and is one of the largest urban infill redevelopment zones in the U.S.
The loan was arranged by Shahin Yazdi of George Smith Partners. “Working with ACRES and ELK Development on 1410 Highland was a productive partnership that recognized the opportunity to provide affordable multifamily housing with efficient, yet high-end design and amenities,” said Yazdi. “We look forward to future opportunities to work with this team again.”