A development that sat unfinished and abandoned is back on track in Compton, Calif.
Pembrook Capital Management announced that it has provided a $7.57 million first mortgage loan to complete the development of Alondra Villas, a 29-unit townhouse development.
Neighborhood Housing Services of Los Angeles County (NHS) purchased the partially completed project approximately 18 months ago from the city. The Pembrook loan will allow NHS to complete the construction of the project over the next nine months and sell the units to low- and moderate-income buyers.
The previous owner, a local developer, started the project before the recession. However, the city of Compton took over the project when the developer failed to complete it, and the site sat blighted until now, according to Pembrook officials.
The largest nonprofit affordable homeownership provider in Southern California, NHS has developed and rehabilitated over 21,000 housing and commercial units, placed 4.4 million families on the path to homeownership, and invested more than $4.7 billion back into some of Los Angeles County’s toughest neighborhoods.
“Pembrook shares the sponsor’s dedication to bringing quality affordable housing to the neighborhoods they serve, and we are pleased to provide financing for a project that will have an immediate impact on the Compton community," said Stuart J. Boesky, CEO of Pembrook, in a statement. “Despite a high demand for housing, there has not been any substantial new construction of homes for sale in this area for many years.”
In addition to providing new housing, the development will help revitalize and strengthen the neighborhood, added Boesky.
Pembrook partnered with Banc of California to provide the financing for Alondra Villas. The loan to the developer is a first mortgage for a 24-month term.
Alondra Villas consists of 22 three-bedroom units, five four-bedroom units, and two four-bedroom units. The property also includes 58 covered parking spaces with an additional seven guest spaces. The homes are expected to sell for between $350,000 and $400,000.
While the homes will be sold to low- and moderate-income families, the specific income restrictions have yet to be determined, according to a representative.
Pembrook is a real estate investment manager that provides financing throughout the capital structure. The firm has originated or participated in investments totaling over $1 billion since it began investing in 2007.
Since 1984, NHS has developed and rehabilitated over 21,000 housing and commercial units, placed 4.4 million families on the road to homeownership, and invested more than $4.7 billion back into some of Los Angeles County's toughest neighborhoods.