About this Property in Los Angeles, CA – Land Assemblage Refinance

Los Angeles, CA — Development Site Bridge Refinance

Loan Amount: $4,000,000
Loan Type: Bridge Loan (Refinance for Redevelopment)
Property Type: Covered land assemblage with existing improvements, positioned for multifamily and commercial redevelopment
Use of Funds: Refinance existing debt and provide flexibility to advance plans, transition legacy tenancy, and prepare the site for its next phase

Overview

Enact Partners provided bridge financing for a covered land assemblage in Los Angeles along a major commercial corridor. The property includes older improvements that supported limited interim occupancy while redevelopment planning moved forward.

The borrower’s immediate objective was to refinance multiple notes into a single facility and create the flexibility needed to move the project forward without forcing timing decisions. The bridge loan simplified the capital structure, eased near-term pressure, and allowed the borrower to continue preparing the site for redevelopment while maintaining control.

The assemblage is positioned for a multifamily redevelopment with ground-floor commercial. The zoning framework supports a by-right development path, helping reduce uncertainty and allowing planning and coordination to continue efficiently toward the next stage of financing.

Loan Structure

The $4,000,000 bridge loan was structured to support the borrower’s transition and redevelopment timeline:

• Loan Proceeds: Refinance existing debt and consolidate obligations into a single loan
• Term: 12-month bridge loan with extension options to align with planning and execution
• Interest Support: Interest reserve to reduce cash-flow demands during the transition period
• Flexibility: Ability to phase out remaining tenancy and advance redevelopment preparation

Los Angeles Market Dynamics

Well-located redevelopment sites remain limited across Los Angeles, particularly those that can move forward with clarity around zoning and entitlements. This corridor benefits from long-term demand drivers, dense surrounding neighborhoods, and proximity to major employment centers.

While the existing improvements served a purpose during the hold period, the focus of the project is redevelopment. The ability to proceed by right and utilize local housing incentive programs supports a more predictable path forward and keeps the project aligned with current market needs.

Sponsorship

The sponsor brings meaningful experience across Los Angeles-area multifamily and mixed-use ownership and redevelopment planning, with a history of navigating complex projects through varying market conditions. The project is supported by a development partner with institutional-level capabilities, strengthening execution, budgeting, and the transition to construction financing.

Exit Strategy and Expected Outcome

The primary exit strategy is a construction loan to fund redevelopment once plans and permits are finalized. A secondary option is a sale of the assemblage to a qualified developer.

Enact’s role in this transaction was to provide bridge capital that gave the borrower time and flexibility to refinance existing debt, create optionality, and keep the redevelopment plan moving without losing control of the site.