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Priority Capital Secures 91% Loan-to-Cost for Granada Hills ED-1 Project
Priority Capital Advisory, a Los Angeles-based boutique debt and equity capital advisor, has secured $18 million in senior debt financing to construct 17188 Chatsworth, a 69-unit affordable multifamily community in Granada Hills. Founder and president Zachary Streit arranged the financing on behalf of the sponsorship, a joint venture between local developers KH Equities and BMI Development.
The project is participating in Los Angeles Mayor Bass’s ED-1 initiative, which streamlines the approval process for affordable housing projects. It created significant interest in the debt capital markets, due to its affordability, significant tax abatement and the streamlined approvals afforded by the ED1 initiative. Priority Capital secured and closed final financing with an exceptionally high loan to cost of 91%.
“While a 91% LTC is noteworthy all on its own – and the highest I’ve ever experienced in my nearly two-decade commercial real estate finance career – it was the aggressive nature of the lender participation that really set this deal apart,” said Streit.
- ◦Development
- ◦Financing
