Preferred Equity Investment
This infill project, formerly a 1.58 acre parking lot within the City of Downey, was brought to the sponsor by the City of Los Angeles. The City reviewed the proposed site plan and supported the development of 39 townhomes on Telegraph Road just off the I-5. McKinley committed $4.8M in preferred equity to fund the land acquisition and horizontal and vertical construction. In 2015, the sponsor, Florence Homes, completed and sold two similar 17-townhome projects in Downey and Pico Rivera near subject property location. These comps previously sold very quickly, as did High Pointe. This gated community offered 3-4 bedroom units ranging from 1,560-2,100SF with a community pool and recreational space. The development sold out in August 2019 with prices ranging from lower $500k to mid-$600k.