Priority Capital Advisory has arranged a $31.3-million loan on behalf of Six Peak Capital, a Los Angeles-based developer and investment firm. The senior debt financing is for the development of a 116-unit 100% affordable housing project located at 9033 Ramsgate in the Westchester neighborhood of Los Angeles.
“Since this was an ED1 project, Priority Capital Advisory needed to identify a lender who was comfortable with some of the nuances of getting an ED1 project financed, including a significant property tax abatement and a limited parking ratio,” said Zachary Streit, founder and president of Priority Capital Advisory, in a statement. “Despite these distinctions and some of the headwinds facing development in Los Angeles, this loan request attracted a significant number of bidders, and we were able to deliver a successful and smooth closing.”
9033 Ramsgate is a Los Angeles Executive Directive 1 (ED1) project. ED1 projects enable developers to utilize California’s State Density Bonus Law to entitle affordable housing, offering substantial incentives such as increased density, building height, reduced parking requirements and accelerated review and permitting processes for 100% affordable projects.
The property will include a unit mix designed to attract both individuals and families, comprising 15 studios, 31 one-bedroom/one-bathroom units and 70 two-bedroom/one-bathroom units. All units will be fully furnished, offering tenants a seamless, move-in-ready living experience.
“This loan and groundbreaking reflect Six Peak Capital’s continued expansion into the development of covenanted affordable housing in California,” said Chris Aiello, partner with Six Peak Capital, in a statement.
With this loan in place, the project broke ground with completion anticipated for late 2027. Construction will be led by LV Construction LLC, Six Peak Capital’s affiliated construction company.
Priority Capital Arranges $31.3M Affordable Housing Loan
