Big news today on Metro’s plans to build a light rail line in the San Fernando Valley: The Metro Board certified the project’s Final Environmental Impact Report, which officially ends the state-required environmental review process.
That’s a big step forward toward construction of the light rail line that will run between the G Line (Orange) Van Nuys Station and the Sylmar/San Fernando Metrolink Station with 14 stations. The official name of the project is the East San Fernando Light Rail Project. Read more.
The Light Rail Transit (LRT) will include 14 at-grade stations with a travel time of 31 minutes end-to-end. Construction is scheduled to begin in 2022, and will be completed in time for the 2028 Summer Olympics.
This is big news for Topanga Partners, which has three multifamily apartment developments within close walking distance of LRT stations. Topanga’s Gilmore Apartments, a 31-unit modern multifamily development located at 14541 Gilmore Street that broke ground in June 2020, is a mere 3-minute walk (0.2 miles) from the future Victory LRT Station. To the north of Gilmore Apartments, Topanga’s 10-unit townhouse-style apartment complex located at 14912 Wyandotte Street, is a 12-minute walk (0.6 miles) from the future Sherman Way LRT Station. And, Topanga’s completed 22-unit apartment building located at 6200 Kester Avenue is a 15-minute walk (0.7 miles) from the Van Nuys Blvd/Metro Orange Line Station.
LOS ANGELES, Nov. 23, 2020 /PRNewswire/ — Topanga Partners, an LA-based multifamily developer, in partnership with Arixa Capital, a real estate debt and equity investment fund manager, recently broke ground on a 31-unit apartment project located in Van Nuys Central Business District in Los Angeles, CA.
The project, located in an Opportunity Zone in Los Angeles, was funded utilizing Arixa Capital’s Qualified Opportunity Fund. The construction loan for this project, which is located on Gilmore Avenue, was provided by Bank of the Sierra and includes a permanent loan conversion feature upon completion and stabilization.
The Gilmore project will feature smart technology, wireless interface, green sustainable LEED-accredited landscaping and spacious 2-bedroom/2-bathroom units. This is Topanga’s seventh multifamily ground-up project in the Van Nuys and Lake Balboa area in the San Fernando Valley. Topanga also has a 48-unit project in pre-construction in an Opportunity Zone in the Downtown Long Beach Business District.
The ground-up development represents one of the first Opportunity Zone projects in the San Fernando Valley to be funded through the 2017 Opportunity Zone Program. As part of the Tax Cuts and Jobs Act of 2017, the Opportunity Zone Program helps drive capital to designated communities across the nation by offering substantial capital-gains tax breaks for investors who invest in any of the 8,000+ designated lower-income census tracts. Investors can defer paying capital gains taxes on the money they invest in an Opportunity Zone project, and should they keep their money invested long enough, they eliminate taxation on profits from the project itself.
“We believe our Gilmore building (www.14541gilmore.com) exemplifies the future of Opportunity Zone projects where investors can channel their capital gains into Opportunity Zone buildings for attractive returns. This project provides a positive community impact where job creation and modern housing meets affordable rents for our tenants. We will continue to source these projects in Southern California, and partner with fund managers like Arixa who share our goals and values,” said Topanga’s Partner, Steve Friedmann.
The project is designed by Dan Safai Architects of Los Angeles and provides much needed workforce housing to Los Angeles area residents and families.
“Arixa Capital is pleased to partner with Steve and his team on this exciting project. The area served will develop substantially in the years to come, with light rail approved nearby on Van Nuys Boulevard. Focusing new development near mass transit is part of the solution to global warming, since it offers an alternative to long commutes from the suburbs,” said Arixa Capital’s Chief Investment Officer, Jan Brzeski.
About the Companies
Arixa Capital is one of the West Coast’s premier private real estate lenders and fund managers providing small balance loan solutions to lower middle-market residential and commercial investors and developers. Since inception, the Firm has originated in excess of $1.7 billion in loans and generated attractive risk-adjusted returns for its partners and investors. Visit www.arixacapital.com for more information.
Topanga is a fully integrated apartment developer with in-house construction and property management based in Los Angeles, CA. Our focus is on creating value for our stakeholders by transforming residential real estate into stable incoming generating assets. Visit www.topangapartners.com for more information.
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According to BisNow, experts say the value of LA’s multifamily properties are holding strong despite the regions rocky rental market. Read more.