The owner of Lincoln Place Apartments in Venice has announced the closing of financing to fund its redevelopment of the post-World War II era complex.
The redevelopment of the 35-acre property is being funded by a $190.8 million Federal Housing Administration-insured loan that closed Oct. 12, according to Apartment Investment and Management Company, the property owner.
The loan represents the largest FHA Section 221(d)(4) unsubsidized loan ever insured by the U.S. Department of Housing and Urban Development, according to AIMCO. The loan bears interest at 2.73 percent, and is interest-only until 2014, when it converts to a 40-year fully amortizing loan that is freely pre-payable after 10 years. The lender and servicer of the loan is Red Mortgage Capital, LLC.
“It is very gratifying that the Lincoln Place redevelopment is now underway,” said Terry Considine, AIMCO chairman and chief executive officer. “It has taken many years to arrive here. More, it has taken the hard work of many, including officials of the city of Los Angeles, the (U.S. Housing and Urban Development) Los Angeles field office, and my AIMCO teammates. I am delighted by our prospects.”
Following a settlement with the city and tenants, an early phase of the project began last year with the redevelopment of four buildings with 65 apartment homes. Work was completed earlier this year and 50 of the apartment homes have been re-leased to returning residents.
Over the next two years, AIMCO plans to redevelop another 41 buildings including 631 now-vacant apartment homes, along with common areas and landscaping. The property owner will also construct on now-vacant land 13 new buildings with 99 apartment homes, a 5,000-square foot leasing center and a 6,100-square foot fitness center and pool area, an AIMCO spokesperson said.
Lincoln Place was constructed between 1949 and 1951. Its original development included a design team led by Ralph A. Vaughn, an African-American architect interested in the Garden City Movement, which sought to combine the amenities of urban life with ready access to nature.
The complex has been listed on the national and state Register of Historic Places.