Priority Capital Advisory Secures $31.3 Million for Westchester Affordable Housing Development

Priority Capital Advisory has successfully arranged a $31.3 million loan for the development of a 116-unit affordable housing project in Los Angeles' Westchester neighborhood. The senior debt financing was secured on behalf of Six Peak Capital, a Los Angeles-based developer and investment firm, for the project located at 9033 Ramsgate. This transaction represents a significant achievement in affordable housing finance amid current market headwinds affecting development throughout the Los Angeles region.

The development qualifies as a Los Angeles Executive Directive 1 (ED1) project, enabling developers to utilize California's State Density Bonus Law to entitle affordable housing. This program offers substantial incentives including increased density, building height, reduced parking requirements and accelerated review and permitting processes for 100% affordable projects. Zachary Streit, Founder and President of Priority Capital Advisory, noted the unique challenges of financing an ED1 project, stating that the firm needed to identify a lender comfortable with the program's nuances, including significant property tax abatement and limited parking ratios.

Despite current headwinds facing development in Los Angeles, the loan request attracted significant interest from multiple bidders, resulting in a successful closing. The property will feature a diverse unit mix designed to accommodate both individuals and families, comprising 15 studios (13%), 31 one-bedroom/one-bathroom units (27%), and 70 two-bedroom/one-bathroom units (60%). All units will be fully furnished, offering tenants a move-in-ready living experience that addresses immediate housing needs for the local workforce.

The strategic location of the half-acre site provides significant advantages for workforce housing. Situated convenient to the 405 Freeway and adjacent to Los Angeles International Airport (LAX), the property serves a major employment hub with approximately 59,000 workers. The development is also a 10-minute drive from Hollywood Park, a 300-acre mixed-use development that includes major venues such as SoFi Stadium, Kia Forum, Intuit Dome, and YouTube Theater, creating another substantial employment and entertainment center.

Chris Aiello, Partner with Six Peak Capital, emphasized the project's significance in the company's expansion into covenanted affordable housing in California. The firm is actively seeking partnerships with landowners across California to deploy innovative housing strategies and deliver long-term affordability solutions. With financing secured, the project has broken ground with completion anticipated for late 2027. Construction will be led by LV Construction LLC, Six Peak Capital's affiliated construction company.

Since its inception just over a year ago, Priority Capital Advisory has closed more than $550 million in debt financing across 24 transactions, establishing itself as a reliable capital solutions provider in challenging market conditions. For more information about their services, visit https://www.prioritycapitaladvisory.com. The successful financing of this ED1 project demonstrates that despite economic uncertainties, well-structured affordable housing developments continue to attract capital and represent viable investment opportunities while addressing critical social infrastructure needs.