Bank OZK has provided a $132.7 million construction loan to finance ElevenOneEleven, a 344-unit mixed-use development in Culver City, California. The borrower is a joint venture between Lincoln Property Company and McCourt Partners, according to reporting by Commercial Observer. Louis Friedel and Keith Rosso of Berkadia arranged the financing on behalf of the development team.
The planned six-story project will be built on a 3.4-acre site located at 11111 Jefferson Boulevard, near Downtown Culver City and Playa Vista in neighboring Los Angeles. In addition to 344 apartments, the development includes 52 affordable units, 2,000 square feet of retail space, 17,520 square feet of publicly accessible outdoor space, two floors of residential amenities, and 500 parking spaces. KFA Architecture is designing the property, and construction is scheduled to begin before the end of the year.
What happened
The $132.7 million construction facility supports the ground-up development of ElevenOneEleven in Los Angeles County. Lincoln Property Company and McCourt Partners formed a joint venture to build the multifamily and retail asset, securing the debt package through Berkadia.
The transaction adds to Bank OZK's commercial real estate originations in Southern California. As reported by Commercial Observer, the regional bank reported originating $38.75 billion in new commercial real estate loans across the five years that ended June 30.
What it changes for a closing
For closing teams, large ground-up construction loans with affordable housing components require detailed coordination between multiple stakeholder groups before funds can be released. Closing counsel and loan administration teams must align the core construction loan agreement with covenants governing the 52 affordable units alongside market-rate residential units and commercial retail leases.
A project of this scale also involves verifying land-use approvals for the 3.4-acre site at 11111 Jefferson Boulevard, managing architect and contractor consents with KFA Architecture, and establishing disbursement schedules for construction before ground breaks later this year. Deal teams must track title requirements, public access easements for the 17,520 square feet of outdoor space, and joint venture authorization documents between Lincoln Property Company and McCourt Partners to ensure a clean loan execution.