Echo Park, Los Angeles, September 22, 2025
News Summary
A Los Angeles developer closed a $46.6 million construction loan to build The Court Residences, a 189-unit workforce housing project in Echo Park targeted primarily at households earning up to 80% of AMI. The financing combines senior debt from a national bank community development division with mezzanine funds from a nonprofit capital intermediary and a municipal finance authority. The developer used private capital and density incentives to limit per-unit costs to about $247,000 and avoid certain public wage rules. Groundbreaking is complete and construction is underway, with rents expected roughly 30–40% below neighborhood market rates.
The Court Residences in Echo Park Secures $46.6 Million for Construction
A new 189-unit apartment project in Echo Park has closed on $46.6 million in construction financing and has already held a groundbreaking ceremony. The development, known as The Court Residences, is being built as workforce housing for households earning up to 80% of area median income (AMI).
Financing and partners
The construction loan package combines senior debt and mezzanine financing. The senior piece was provided by the community development banking arm of a major national bank, while mezzanine support comes from two community-focused financiers. The combined financing closes out at $46.6 million and funds the main build phase for the Echo Park project.
Project details and affordability
The project will designate the 189 units as workforce housing, primarily targeting households at or below 80% AMI. Across multiple projects led by the same developer in the area, the planned split is generally 80% of units for households at or under 80% AMI with the remaining 20% for households at or under 120% AMI. The developer estimates a construction cost of about $247,000 per unit, which is described as competitive for affordable projects in the city.
Why costs are lower
The developer credits the relatively low per-unit cost to several factors: streamlined administrative and permitting processes, density gains provided by a city program that encourages streamlined approvals for affordable housing, and a financing choice that relies on private capital rather than public funding tied to prevailing wage mandates. Those combined choices are presented as ways to speed delivery and reduce typical cost pressures.
Location and impact
The site is in Echo Park, a neighborhood the developer selected because of its walkability, amenities and proximity to downtown and public transit. The project is being designed with community-oriented amenities and an emphasis on a quality living experience that is intended to avoid the look and feel of conventional affordable buildings. Rents for the building are planned to be substantially below market-rate levels in Echo Park, with an expected gap of roughly 30% to 40% below neighborhood market rents.
Team and broader pipeline
The project marks the developer’s first fully affordable multifamily project, even as the firm pursues a broader pipeline of nearly 940 units across the city. Partners on construction financing include a major bank’s community development unit and two community finance organizations. The developer is working on other small-to-mid-sized projects in nearby neighborhoods, including plans for a 33-unit site south of a major freeway and a 90-unit development along the eastern stretch of a busy boulevard. All three pipeline projects are planned with similar affordability goals.
Timing and next steps
Groundbreaking took place earlier this month. Other projects in the developer’s local pipeline were targeted to begin construction later in the year, though precise schedules remain subject to permitting and finance milestones. The current financing secures the build phase for The Court Residences and positions the project to move through construction without relying on public subsidy that would trigger alternative labor rules.
Community context
Echo Park has an active development scene with multiple multifamily projects either under construction or in planning. Local multifamily vacancy rates and asking rents reflect a tight market, and several nearby projects aim to add new units, including both market-rate and affordable offerings. The new workforce project sits amid a wave of neighborhood proposals intended to increase housing supply while preserving access to transit and neighborhood services.
Contact details
The developer maintains an office at 11150 Santa Monica Boulevard, Suite 350, Los Angeles, CA 90025 and can be reached by phone at 323-549-5225 for general inquiries about project status and leasing plans.
FAQ
What is The Court Residences?
The Court Residences is a 189-unit workforce housing project in Echo Park designed for households earning up to 80% of AMI.
How much financing was secured?
Construction financing totaled $46.6 million, made up of senior and mezzanine loans.
Who provided the financing?
Financing includes senior debt from a community-focused banking division of a national bank and mezzanine support from two community finance organizations.
Why is the per-unit cost relatively low?
The developer cites streamlined processes, density benefits from a city housing program, and the exclusive use of private funding to avoid prevailing wage requirements as factors lowering per-unit costs to about $247,000.
When did construction start?
Groundbreaking occurred earlier this month and construction financing is now in place to move the project forward.
Will rents be below market?
Yes. Rents for the workforce units are expected to be approximately 30% to 40% below Echo Park market-rate rents.
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Key project features
| Feature | Detail |
|---|---|
| Project name | The Court Residences |
| Location | Echo Park |
| Unit count | 189 units |
| Affordability | Workforce housing for households at or below 80% AMI |
| Financing | $46.6 million in senior and mezzanine construction financing |
| Per-unit cost | Approximately $247,000 per unit |
| Major financing partners | Community development banking division of a national bank; two community finance organizations |
| Groundbreaking | Earlier this month |
| Planned rent gap | 30%–40% below local market-rate rents |
| Developer pipeline | About 940 units under development citywide, plus other planned projects in nearby neighborhoods |
Deeper Dive: News & Info About This Topic
Additional Resources
- The Eastsider LA: Affordable housing in Echo Park, new Panera by LACC & other real estate news
- Wikipedia: Echo Park, Los Angeles
- Los Angeles Business Journal: LA Rising — Echo Park key projects
- Google Search: LA Rising Echo Park key projects
- The Detroit News: Pistons’ Tobias Harris joins forces with brother to help build affordable housing
- Wikipedia: Tobias Harris
- Los Angeles Times Opinion: Echo Park — homeless colony, gentrification, housing
- Encyclopedia Britannica: Echo Park (search)
- ABC7: Tenants in affordable bungalow court in Echo Park face eviction (2020)
- Google Scholar: Echo Park bungalow court eviction 2020
Author: Construction CA News
CALIFORNIA STAFF WRITER The CALIFORNIA STAFF WRITER represents the experienced team at constructioncanews.com, your go-to source for actionable local news and information in California and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Rose Parade, Coachella, Comic-Con, and the California State Fair. Our coverage extends to key organizations like the California Building Industry Association and Associated General Contractors of California, plus leading businesses in technology and entertainment that power the local economy such as Apple and Alphabet. As part of the broader network, including constructionnynews.com, constructiontxnews.com, and constructionflnews.com, we provide comprehensive, credible insights into the dynamic landscape across multiple states.
