LOS ANGELES – Thrive Living, with the support of JPMorgan Chase, is delivering a new 376-unit affordable and workforce housing community on the site of a former industrial storage facility north of Downtown Los Angeles.
Last year, Thrive Living secured entitlements for the site, located at 1457 North Main Street, and recently began construction of a contemporary six-story mixed-use apartment complex that will help meet the need for more affordable and workforce housing in Los Angeles.
JPMorgan Chase, through its Workforce Housing Solutions group (formerly Capital Solutions), is providing a $68.5 million construction loan to an entity controlled by Thrive Living, which anticipates completing the Main Street project by December 2024.
The rents for all of the building’s 376 units are attainable for low- and moderate- income residents earning up to 80% Area Median Income (AMI). Some examples of moderate-income residents are teachers, nurses, and other essential workers for whom housing costs often exceed more than half of their income. The building will also welcome individuals with Housing Choice Vouchers.
This project aligns with Thrive Living’s mission to acquire and redevelop strategically located sites in urban markets that are experiencing significant housing affordability gaps. Like other Thrive communities, the Main Street project is privately financed without the use of scarce public subsidies.
“Our non-subsidized financing model enables us to make a bigger impact and move faster to build more affordably priced housing without concern for ceilings imposed by limited tax credits,” said Zak Tendle, Principal, with Thrive Living’s Los Angeles office. “We are so appreciative of the opportunity to work with the team at JPMorgan Chase and bring this important housing project to life in Los Angeles, where quality housing that is affordable to residents is in such short supply.”
“JPMorgan Chase is a leader in providing debt for low-income housing tax credit (LIHTC) affordable housing projects. Our Workforce Housing Solutions group expands our financing offerings to include workforce and mixed-income projects with restricted rents,” said Lionel Lynch, Director of the Community Development Banking Workforce Housing Solutions Group at JPMorgan Chase. “This fully rent-restricted Main Street project fills a significant gap between affordable housing for low- income families funded with LIHTC and unrestricted market-rate housing, providing safe and stable housing with attainable rents in high quality new construction with vibrant community amenities.”
This is JPMorgan Chase’s first construction loan to a 100% rent- and income-restricted workforce housing multifamily community.
Thrive’s Main Street property features a cost-effective, innovative design approach that drives down construction costs while maintaining quality. The company’s goal is to build upwards of 5,000 units of affordable and workforce housing each year in California.
The 1457 Main Street project reflects Thrive Living’s approach to create spaces for residents that enrich the living experience. The property will include resident amenities equal to or better than many market-rate developments. These include a landscaped roof deck, including a BBQ and dining area with seating, as well as a gym, recreation room, Amazon package room, and business center. The transit-oriented property is located near public transportation, and is a short walk from the Los Angeles Historic Park as well as dozens of shops, restaurants, and other community amenities. Parking will be located below the building and will include EV charging stations.
About Thrive Living
Thrive Living is a privately-owned, U.S. company positioned to invest more than $1 billion in workforce housing in California over the next two years. We acquire strategically located properties in urban markets that are experiencing significant housing affordability gaps. We are a national brand, currently pursuing our mission in Los Angeles – a city and region experiencing a severe housing affordability crisis where rents are rising faster than incomes. Thrive is an affiliate of Magnum Real Estate Group, a vertically integrated real estate company which has developed $5.5 billion of real estate, including a wide range of ground-up residential rental and for-sale apartments, adaptive re-use and historic conversions, student housing, community facility development, retail, and light office.
