Elk Development Lands $41M Loan For Hollywood Micro-Unit ProjectApril 24, 2021
Acres Capital has originated a $41.1M construction loan for a Hollywood micro-unit project by Elk Development, the lender announced.
“Hollywood is globally recognized as the center of the entertainment industry, but historically has lacked quality multifamily housing,” Acres Capital CEO and President Mark Fogel said in a statement.
Fogel noted that the neighborhood has seen “thousands of Class-A housing units and community-serving retail storefronts recently added … to accommodate its growing population of young professionals.”
Elk is sponsoring the loan with real estate investment firm Sixty West. The transaction was arranged by George Smith Partners principal and Managing Director Shahin Yazdi.
Courtesy of Acres Capital
A rendering of the project planned for 1410 North Highland Ave.
As the overall office sector grapples with pandemic shutdowns and capacity restrictions, the entertainment sector has remained strong. Demand for soundstages and entertainment office and production space has resulted in major sales, big leases and sweeping studio redevelopment plans in Hollywood.
Acres’ announcement of the deal referenced the proximity of the micro-unit development, called Miles on Highland, to major employers, including media and entertainment companies.
“The Acres team shares our vision to serve the transforming Hollywood submarket with a multifamily property in Miles on Highland that is both aspirational and affordable,” Elk Development CEO and founder Evan Kasper said in a statement.
The six-story project will bring 180 micro-units and ground-floor retail to a site at 1410 North Highland Ave. The development will feature micro-units arranged into 49 pods, suite-style groupings ranging from three to six bedrooms per pod. The units will be fully furnished. Residents will have access to amenities including a two-level parking garage with an automated lift system, a gym, a shared courtyard, a dog run and a rooftop deck.
Elk Development has another micro-unit project underway in Hollywood: an 86-unit development for which GSP’s Yazdi secured a $14.1M construction loan in October. Yazdi told Bisnow that in both cases, it was very clear that lenders could see the benefit of the micro-unit model in Hollywood.
“We got the [$14.1M construction loan on the 86-unit project] done in the depths of Covid,” Yazdi said. “It really speaks to the vision of Elk Development that lenders were willing to do a deal at that time. There’s obviously a clear need for this kind of housing in LA.”