Dealmaker: Newmark Secures $947M for Park La Brea Apartments in Los Angeles
(Photo courtesy Prime Residential)
Newmark Group, New York, secured a $947 million loan for Los Angeles’ Park La Brea, the largest apartment community on the West Coast.
Newmark sourced the financing for Prime Residential, San Francisco, to retire existing debt. Freddie Mac, McLean, Va., said it expects to securitize the loan through its K-Deal program.
Newmark Executive Vice Chairman Mitch Clarfield, Vice Chairman Ramsey Daya, Executive Managing Director Chris Moritz and Vice President Alec Newman led the financing.
The 4,249-unit rent-controlled property includes 18 high-rise towers and 175 garden-style buildings spread over 144 acres. Nearly 10,000 residents live in the community, which resembles a small city with 24-hour security patrol, landscaped courtyards, fitness trails, a Wi-Fi café, movie theater, dry cleaner, electric car charging and fitness centers.
“This was a historic financing that contains a variety of custom features, including the flexibility to construct a significant number of Accessory Dwelling Units on the property, which will contribute to addressing the state’s housing and affordability crisis,” Clarfield said. “We received interest from many different capital sources on extremely competitive terms. Ultimately, the surety of close and the history of collaboration between Prime, Freddie Mac and Newmark gave Prime the comfort to proceed in turbulent times and get the 10-year fixed-rate loan across the finish line.”
Freddie Mac Multifamily Vice President of Production and Sales Steve Lineberger said the financing ensures many Los Angeles families will have a safe, affordable place to live in this historic community. “Working with two great partners in both Newmark and Prime Residential, we are pleased to continue to help support workforce housing via this vital multifamily community that has been home to so many since the 1940s,” he said. “We look forward to continuing to support liquidity, stability and affordability to the multifamily market through these types of transactions across the country.”
MetLife developed Park La Brea between 1941 and 1950. Prime Residential has owned and managed the asset since 1995. The 95.5%-occupied community is located at 6200 West Third Street, about seven miles west of downtown Los Angeles near the Miracle Mile district.
Newmark’s first-quarter U.S. Multifamily Capital Markets Report said debt originations continued to decelerate in early 2023. “Newmark Research cites that government-sponsored enterprises provide a buffer against the cyclical lending conditions,” the report said. “Given the tightening lending standards by banks and other lender types, GSEs play a crucial role in providing liquidity, especially for mission-rich and affordable housing.”
