Thrive Living, with JPMorgan Chase’s support, is planning a new affordable and workforce housing community in downtown Los Angeles, solely financed with private capital. The 376-unit property is made possible through JPMorgan Chase’s Workforce Housing Solutions group, which provided a $68.5 million construction loan.
Each of the 376 apartments in the new community will be fully rent-restricted. They will include 42 extremely low-income (ELI) units, restricted at 30 percent of Area Median Income (AMI). The remainder of the units will be priced to not exceed 80 percent AMI.
“Workforce Housing Solutions is built upon JPMorgan Chase’s decades of experience financing traditional affordable and market-rate housing,” Lionel Lynch, JPMorgan Chase head of workforce housing solutions, told Multi-Housing News.
“We were able to draw upon our deep expertise and experience across all types of multifamily financing to develop a creative approach,” Lynch said. “We looked at the deal from a different perspective than we would for traditional affordable or market-rate financing and underwrote by looking at the bigger picture. We were able to work with the developer, Thrive Living, to balance the amount of equity and debt that was needed to make the project financially viable. We also incorporated into our underwriting the tremendous societal need, and market demand, for rent- and income-restricted workforce housing that is at a discount to market rents.”
Thrive Living secured entitlements to the site, located at 1457 North Main St., last year. It has recently begun construction of the contemporary, six-story mixed-use complex.
The building’s design approach is innovative, cost-effective and intended to maintain quality while driving construction costs lower. Thrive Living has a corporate objective to build as many as 5,000 units of affordable and workforce housing yearly in California.
Thrive Living’s philosophy is to create residential spaces that enrich the experience of living and 1457 Main Street reflects that mission. The community’s amenities will be comparable to, if not higher-quality than, many market-rate projects. Among them are a recreation room, gym, Amazon package room, business center and a landscaped roof deck featuring a barbecue and dining area with seating.
The location of the 1457 Main Street development will place residents near public transportation and within steps of the Los Angeles Historic Park. Dozens of restaurants, stores and additional neighborhood amenities are also proximate. Parking will be incorporated below grade and will feature electric vehicle charging stations.
Thrive Living’s Main Street project is slated for a December 2024 completion date. This represents JPMorgan Chase’s first construction loan to a 100 percent rent- and income-restricted workforce housing multifamily community.
Three months ago, Standard Communities acquired a Los Angeles affordable housing portfolio in the area. The transaction totaled approximately $122 million and encompassed six communities.
Gillian Executive Search is a leader in Affordable Housing Development, Financing, Design and Construction recruiting. www.gessearch.com