Priority Capital Advisory Secures $31.3 Million Financing for 116-Unit Affordable Housing Development in Los Angeles
TL;DR
Priority Capital Advisory secured a $31.3 million loan for Six Peak Capital's affordable housing project, demonstrating expertise in navigating complex ED1 financing to gain market advantage.
The 116-unit project utilizes California's ED1 program for streamlined approvals and tax benefits, with construction by LV Construction LLC targeting late 2027 completion.
This fully furnished affordable housing development near LAX provides quality homes for local workers, addressing California's housing crisis while building sustainable communities.
The Westchester project features 15 studios, 31 one-bedroom, and 70 two-bedroom units near major employment hubs including SoFi Stadium and Hollywood Park.
Priority Capital Advisory has successfully arranged a $31.3 million loan for Six Peak Capital to develop a 116-unit affordable housing project in Los Angeles' Westchester neighborhood. The senior debt financing will support the construction of a fully affordable residential complex at 9033 Ramsgate, representing a significant investment in addressing Southern California's housing affordability crisis.
The project qualifies as a Los Angeles Executive Directive 1 (ED1) development, enabling the utilization of California's State Density Bonus Law to streamline the entitlement process for 100% affordable housing. This designation provides substantial incentives including increased density allowances, building height flexibility, reduced parking requirements, and accelerated review and permitting processes. Zachary Streit, Founder and President of Priority Capital Advisory, noted the complexity of financing ED1 projects, stating that the firm needed to identify lenders comfortable with the program's unique aspects, including significant property tax abatements and limited parking ratios.
Despite current development challenges in the Los Angeles market, the loan request attracted multiple bidders, resulting in a successful closing. The property will feature a diverse unit mix designed to accommodate various household sizes, consisting of 15 studios (13%), 31 one-bedroom/one-bathroom units (27%), and 70 two-bedroom/one-bathroom units (60%). All units will be fully furnished, providing tenants with move-in-ready living experiences that reduce relocation barriers.
The half-acre site offers strategic proximity to major employment centers, located adjacent to Los Angeles International Airport (LAX), which employs approximately 59,000 workers, and within a 10-minute drive of Hollywood Park. This 300-acre mixed-use development includes major venues such as SoFi Stadium, Kia Forum, Intuit Dome, and YouTube Theater, creating substantial housing demand from the local workforce. The project aims to provide high-quality, affordable housing options for employees in these employment hubs.
Chris Aiello, Partner with Six Peak Capital, emphasized that this financing reflects the firm's expanding commitment to covenanted affordable housing development throughout California. The company focuses on creating sustainable communities that meet urgent housing demands while building lasting partnerships across the state. As Six Peak Capital scales its affordable housing portfolio, the firm actively seeks partnerships with landowners to deploy innovative housing strategies and ensure long-term affordability.
Construction has commenced with LV Construction LLC, Six Peak Capital's affiliated construction company, leading the development. Project completion is anticipated for late 2027. Since its establishment just over a year ago, Priority Capital Advisory has closed more than $550 million in debt financing across 24 transactions, building a reputation for delivering liquidity solutions in challenging capital markets. For more information about their services, visit https://www.prioritycapitaladvisory.com.
Curated from citybiz