The Los Angeles-based Colliers Mortgage Structured Finance Group arranged $24.4 million in construction financing for Kingsley Apartments, a planned 136-unit, 100% affordable property in Los Angeles’ Koreatown submarket. Leveraging the city’s new Executive Directive 1 initiative (ED 1) to accelerate affordable housing development, the sponsor plans to break ground in June, seven months after filing development plans.

Arranged by executive managing directors Jonathan Lee and Shahin Yazdi and their team, William Hyatt and Tommy Adelson, the financing features a term of 30 months along with optional extensions. It carries a rate of SOFR plus 2.41%.

“Kingsley Apartments exemplifies ED 1’s impact in our community,” said Lee. “We have a 100% affordable project in the heart of a dense urban community, with direct access to mass transit. Since ED 1 is a relatively new initiative, many lenders have not yet fully evaluated the product to offer competitive terms. Throughout this process, several banks considered ED 1 to be ‘too early’ or offered terms in the 50-60% LTC range. Ultimately, we found a lender who understood the program and provided competitive terms and leverage.”