Mixed-Use 4242 Crenshaw is in New Path of Growth

4242 Crenshaw in the Leimert Park neighborhood of south Los Angeles is in a new path of growth as developers have begun taking an interest in moving south of the 10 Freeway. Mega projects such as Sofi Stadium and the redevelopment of the Baldwin Hills Crenshaw Mall have been catalysts for smaller apartment projects.

Parkview Financial recently provided a $29 million construction loan to Greenpointe Development for the mixed-use project on Crenshaw. The development is planned to include 124 apartment units and 6,000 square feet of ground-floor retail.

The site currently has commercial properties which will be demolished. Construction completion is anticipated for October 2022.

“This project will help satisfy a local demand for area housing for both single-person households and families at lower rents compared to other pricier nearby areas,” said Paul Rahimian, CEO and founder of Parkview Financial.

The property is planned for market-rate units including 18 studios, 43 one-bedroom units and 49 one-bedroom units as well as low-income units consisting of two studios, five one-bedroom units and seven two-bedroom units with an average unit size of 755 square feet.  

“We triangulated value from the nearby developments at high interest submarkets such as West Adams and Jefferson Park as well as the Sofi Stadium area to get comfortable that 4242 Crenshaw was going to increase in value in the future,” notes Marty Friedemann, senior underwriter with Parkview Financial. “The submarket rents are currently much lower than that of the average for Los Angeles, but that is because there has been so little development. When new development does occur, demand is high. In many ways, it is the high rents in the rest of Los Angeles that are driving demand into these often-neglected submarkets.”