A preferred equity capital investment by the Canyon-Johnson Urban Fund (CJUF) has jump-started the development One Santa Fe, a $160-million, mixed-use project in downtown Los Angeles’ arts district.
The project’s team also includes The McGregor Co., Polis Builders Ltd. and Goldman Sachs Urban Investment Group (UIG). Locally based KTGY Group, Inc. is the executive architect for the project, which was designed by Los Angeles architect Michael Maltzan. KTGY has already completed construction drawings and the general contractor, Bernards, has commenced predevelopment work onsite. The project is anticipated to be completed by December 2014.
The fully entitled and permitted project, situated on land owned by the Metropolitan Transportation Authority (MTA), spans several blocks on Santa Fe Avenue between First and Fourth streets. When complete, One Santa Fe will include 438 apartments and 78,620 sq ft of office and retail space, along with nearly 50,000 sq ft of public outdoor space.
CJUF’s preferred equity investment closed the financing gap for the four-acre project. The residential portion is being financed by tax-exempt bonds issued by the California Housing Finance Agency and guaranteed by the U.S. Department of Housing and Urban Development, a loan from the city of Los Angeles Housing Department, and Low Income Housing Tax Credit equity provided by UIG. The commercial component is being financed by a loan from the city of Los Angeles; New Markets Tax Credit allocations provided by Clearinghouse CDFI, Genesis LA Economic Growth Corp. and the Los Angeles Development Fund; and New Markets Tax Credit equity provided by UIG.