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Westlake Multifamily Gets $66M Construction Loan

The Westlake neighborhood, just west of Downtown.

Intergulf Development Group has locked down a $66M construction financing loan to begin development of a multifamily project in LA, Commercial Observer reported.

Intergulf is planning to begin construction this summer on a 218-unit project at 495 Hartford Ave. The unit count includes 36 income-restricted affordable units.

“A lot has been made of the headwinds confronting the Southern California market, but we are recognizing pronounced pattern changes and a mean reversion that portends well to the Los Angeles market,” Churchill Real Estate Vice President and co-Head of Originations Jeff Rosenfeld told CO.

Rosenfeld said LA's growth hadn't been as robust in the last two years as other markets, “which could mean that it’s more resilient in the face of a shifting and more challenging economic environment.” 

Los Angeles County's rents were up 12.8% in the first three months of this year compared to the same time last year, but that was dwarfed by Orange County and the Inland Empire's rent growth, which were 18.2% and 17.4%, respectively, over the same time period.

Between December 2019 and 2021, there were 2,671 total units (affordable and market-rate) proposed and entitled in Westlake, data from the department of city planning shows. Developments planned for the neighborhood include a Safco Capital project with 264 units and an under-construction complex with 60 units by 4Site Real Estate.