$46,648,544

Transaction Description: 

George Smith Partners successfully arranged $46,648,544 in construction financing for a 189-unit workforce housing development located in the heart of Echo Park, Los Angeles, CA. The capital stack included senior and mezzanine debt from a national balance sheet lender and a CDFI provider, collectively funding 75% of total project costs. 

The financing was structured with a partial recourse floating-rate senior loan and a full recourse subordinate mezzanine loan. To enhance long-term performance and reduce operating expenses, the Sponsor partnered with a qualified nonprofit group to secure a property tax exemption under California’s Welfare Exemption program.  

The development spans five assembled parcels totaling nearly 86,479 square feet and will deliver a mix of studios, one-bedrooms, and two-bedrooms—deed-restricted between 80% and 120% of AMI—with a significant portion of units set at voucher payment standards. Located within walking distance of Echo Park Lake, neighborhood-serving retail, and major public transit lines, the project benefits from ED1 incentives that streamlined entitlements and unlocked additional density. 

The Sponsor’s vision is to create affordable and quality housing that respects and uplifts residents, essential workers, creatives, and families who are increasingly priced out of the neighborhoods they sustain. In a city where moderate-income renters are often overlooked in both policy and supply, the Sponsor looks to deliver lasting value to the community while challenging outdated assumptions about what affordable housing can be.