Trumark Lands Financing for Luxury Downtown LA Condo Project
- Jan 21, 2015
Trumark Urban, the condominium development arm of The Trumark Group of Cos., has taken a big step forward in its development of 1050 S. Grand, a 22-story luxury residential tower that will sprout up in Downtown Los Angeles. With the assistance of commercial real estate services firm JLL’s Capital Market team, Trumark has secured $77 million in construction financing for the 151-residence project.
PCCP, L.L.C. provided the financing, which came in the form of a non-recourse loan. JLL did double duty for Trumark, as the firm also orchestrated joint venture equity for 1050 S. Grand. The total development cost on the project is $100 million.
Located in the South Park neighborhood of downtown, the site of 1050 S. Grand has been entitled for development since 2007, but nary a building appeared over the years due in no small part to the financial crisis. Trumark, however, wasted precious little time getting its condo project off the ground after completing the purchase of the site in June 2014.
A condominium in downtown Los Angeles appears to be a safe bet in the current market.
“There is a huge demand for multi-family product, especially condominiums, in Los Angeles and 1050 S. Grand is currently the only condominium development ready to begin construction,” John Manning, managing director with JLL, noted in a prepared statement.
The numbers tell the story. According to The Mark Co., in the third quarter of 2014, new-construction condos in downtown increased 13 percent year over year on the pricing index.
Trumark expects to begin marketing units at 1050 S. Grand in early 2016.