LOS ANGELES, CA - Walker & Dunlop, Inc. announced that it arranged construction financing in the amount of $153,750,000 for Rise Koreatown, a seven-story, Class A multifamily property located just off iconic Wilshire Boulevard in Los Angeles, California. The project is being developed by repeat-client Rescore Property Corp., a private real estate investment trust founded by Arthur Falcone, Tony Avila, and Bill Powers that is based in Boca Raton, Florida. Their local development partner is Los Angeles-based Cal-Coast.
Rise Koreatown will comprise 364 luxury studio and one-bedroom apartments averaging 649 square feet, catering directly to the young professional demographic who desires a luxury product in a highly walkable urban location. The property will also feature 52,000 square feet of ground floor retail anchored by Zion Market, a Korean grocery chain.
The project is one of many new developments in the Koreatown area, which is currently experiencing an unprecedented amount of investment activity. In addition to this multifamily offering, several office, retail, and hotel deliveries are scheduled for the coming years. The neighborhood's rise in popularity is thanks to its centralized location near downtown, proximity to multiple metro stops, and access to trendy restaurants, businesses, and a forthcoming museum.
Led by Miami, Florida-based Kevin O'Grady and Eric McGlynn, both Managing Directors in Walker & Dunlop's Capital Markets group, the team structured both senior and mezzanine financing for the project. They leveraged their broad network of capital providers, identifying Barings LLC as the developer's ideal partner for the nonrecourse financing.
O'Grady and McGlynn have been active in structuring nonrecourse construction loans for apartments and other property types nationwide. They also focus on identifying providers of equity, structured debt, and portfolio financing for developers and value-add owners and operators. Together, they have closed in excess of $16 billion in debt and equity transactions.
Said McGlynn, "This project represents another in a series of highly walkable, urban infill communities that is Rescore's focus. Barings provided a higher leverage, nonrecourse loan which achieved Rescore's objectives."