West Hollywood-based Elk Development and Missouri-based Sixty West have received $41.1 million in financing for a micro-unit multifamily and retail project in Hollywood.
Acres Capital Corp. provided the loan to fund the construction and stabilization of the property at 1410 Highland Ave.
Once completed, the project will have 180 micro-units and 96 parking spaces. The two-level garage will have an automated lift system.
The development will also have 800 square feet of retail space, a community area, fitness room, common area courtyard, rooftop deck, spa, dog run and bike storage.
All the micro-units will be fully furnished with a Murphy bed and sofa, table, wall-mounted TV, wardrobe, wet or dry bar with a refrigerator, cabinetry, chairs and soft goods. The units will also have a shared, larger kitchen.
“Hollywood is globally recognized as the center of the entertainment industry, but historically has lacked quality multifamily housing,” Acres Chief Executive and President Mark Fogel said in a statement.
“With the thousands of class-A housing units and community-serving retail storefronts recently added to the neighborhood, the area is fast becoming a true ‘live-work-play’ environment for its growing population of young professionals. 1410 Highland’s micro-units will provide residents with a new housing option that is affordable while featuring high-end finishes and amenities,” he added.
George Smith Partners’ Shahin Yazdi originated the loan.
“The Acres team and broker George Smith Partners both share our vision to serve the transforming Hollywood submarket with a multifamily property in 1410 Highland that is both aspirational and affordable,” Evan Kasper, founder and chief executive of Elk Development, said in a statement.
“Acres’ financing will allow us to see our business plan through to completion, providing unprecedented freedom and flexibility for urban renters,” he added.
Micro-units are apartments that are between 140 to 350 square feet, according to the Central City Association of Los Angeles. Prior to the pandemic, they were in high demand for their affordability compared to conventional apartments in L.A.
For landlords, they are desirable because they can ask rents that are 25% to 100% higher per square foot than other apartments.
Most micro-unit complexes are developed near public transit.
It remains to be seen, though, what demand for micro-units will be like post-Covid, as many tenants have looked for bigger spaces. Experts say, though, that in the long run the lower cost of micro units should keep them desirable.
For reprint and licensing requests for this article, CLICK HERE.