LOS ANGELES, Nov. 23, 2020 /PRNewswire/ -- Topanga Partners, an LA-based multifamily developer, in partnership with Arixa Capital, a real estate debt and equity investment fund manager, recently broke ground on a 31-unit apartment project located in Van Nuys Central Business District in Los Angeles, CA.
The project, located in an Opportunity Zone in Los Angeles, was funded utilizing Arixa Capital's Qualified Opportunity Fund. The construction loan for this project, which is located on Gilmore Avenue, was provided by Bank of the Sierra and includes a permanent loan conversion feature upon completion and stabilization.
The Gilmore project will feature smart technology, wireless interface, green sustainable LEED-accredited landscaping and spacious 2-bedroom/2-bathroom units. This is Topanga's seventh multifamily ground-up project in the Van Nuys and Lake Balboa area in the San Fernando Valley. Topanga also has a 48-unit project in pre-construction in an Opportunity Zone in the Downtown Long Beach Business District.
The ground-up development represents one of the first Opportunity Zone projects in the San Fernando Valley to be funded through the 2017 Opportunity Zone Program. As part of the Tax Cuts and Jobs Act of 2017, the Opportunity Zone Program helps drive capital to designated communities across the nation by offering substantial capital-gains tax breaks for investors who invest in any of the 8,000+ designated lower-income census tracts. Investors can defer paying capital gains taxes on the money they invest in an Opportunity Zone project, and should they keep their money invested long enough, they eliminate taxation on profits from the project itself.
"We believe our Gilmore building (www.14541gilmore.com) exemplifies the future of Opportunity Zone projects where investors can channel their capital gains into Opportunity Zone buildings for attractive returns. This project provides a positive community impact where job creation and modern housing meets affordable rents for our tenants. We will continue to source these projects in Southern California, and partner with fund managers like Arixa who share our goals and values," said Topanga's Partner, Steve Friedmann.
The project is designed by Dan Safai Architects of Los Angeles and provides much needed workforce housing to Los Angeles area residents and families.
"Arixa Capital is pleased to partner with Steve and his team on this exciting project. The area served will develop substantially in the years to come, with light rail approved nearby on Van Nuys Boulevard. Focusing new development near mass transit is part of the solution to global warming, since it offers an alternative to long commutes from the suburbs," said Arixa Capital's Chief Investment Officer, Jan Brzeski.
About the Companies Arixa Capital is one of the West Coast's premier private real estate lenders and fund managers providing small balance loan solutions to lower middle-market residential and commercial investors and developers. Since inception, the Firm has originated in excess of $1.7 billion in loans and generated attractive risk-adjusted returns for its partners and investors. Visit www.arixacapital.com for more information.
Topanga is a fully integrated apartment developer with in-house construction and property management based in Los Angeles, CA. Our focus is on creating value for our stakeholders by transforming residential real estate into stable incoming generating assets. Visit www.topangapartners.com for more information.