$31.3 Million Loan Secured for 116-Unit Affordable Housing Development Near LAX
Priority Capital Advisory has arranged $31.3 million in financing for a 116-unit affordable housing project in Los Angeles, addressing critical workforce housing needs near major employment centers while utilizing California's accelerated development program.
Priority Capital Advisory has secured $31.3 million in senior debt financing for the development of a 116-unit affordable housing project in Los Angeles' Westchester neighborhood. The financing, arranged on behalf of developer Six Peak Capital, will support construction of a fully affordable residential complex at 9033 Ramsgate Avenue, strategically located adjacent to Los Angeles International Airport.
The project qualifies as an Executive Directive 1 (ED1) development, allowing utilization of California's State Density Bonus Law to streamline the approval process for 100% affordable housing projects. This designation provides significant incentives including increased density allowances, building height flexibility, reduced parking requirements, and accelerated review and permitting timelines. Zachary Streit, Founder and President of Priority Capital Advisory, noted the financing challenges specific to ED1 projects, stating that the firm needed to identify lenders comfortable with the program's unique requirements, including property tax abatements and limited parking ratios.
The development will feature a diverse unit mix designed to accommodate both individuals and families, with 15 studios (13%), 31 one-bedroom units (27%), and 70 two-bedroom units (60%). All units will be fully furnished, providing tenants with move-in-ready living accommodations. The property's half-acre site offers convenient access to the 405 Freeway and sits directly adjacent to LAX, a major employment hub supporting approximately 59,000 workers.
The location provides significant advantages for workforce housing, positioned just a 10-minute drive from Hollywood Park, the 300-acre mixed-use development featuring major venues including SoFi Stadium, Kia Forum, Intuit Dome, and YouTube Theater. This strategic positioning aims to provide quality affordable housing options for employees working in these major employment and entertainment districts.
Chris Aiello, Partner with Six Peak Capital, emphasized the project's role in the firm's expanding affordable housing portfolio across California. The company is actively seeking additional landowner partnerships throughout the state to deploy innovative housing strategies that address the urgent demand for affordable housing while ensuring long-term affordability covenants. Construction is now underway with LV Construction LLC, Six Peak Capital's affiliated construction company, leading the build-out with completion anticipated for late 2027.
Priority Capital Advisory has demonstrated significant growth since its inception, having closed more than $550 million in debt financing across 24 transactions. The firm continues to establish its reputation for delivering liquidity solutions in challenging capital market conditions. For additional information about Priority Capital Advisory's services, visit https://www.prioritycapitaladvisory.com.