1506 Van Ness Ave, August 13, 2025
News Summary
City leaders propose a 36-month market-rate bridge loan to help the developer begin construction of a planned 54-unit market-rate apartment building at 1506 Van Ness Ave, featuring a rooftop pool and upscale amenities. Funds would come from state housing and infrastructure grants to fill short-term financing gaps so permanent construction loans or equity can be secured. The plan would also allow similar loans for other downtown projects. City officials emphasize the municipality’s right to reclaim the site if the developer fails to meet required milestones or make meaningful progress.
Fresno mayor seeks short‑term market‑rate bridge loans to jump‑start 54‑unit Uptown LLC project at 1506 Van Ness Ave; city may reclaim land if work stalls
The city is moving to close a short financing gap that has stalled a planned 54‑unit market‑rate apartment project at 1506 Van Ness Ave in downtown Fresno by offering a 36‑month market‑rate bridge loan to the developer. The mayor said the loan is meant to push construction forward quickly and that the city would reclaim the property if the project fails to proceed.
What the proposal covers
The proposed funding plan would send a loan package to the city council that allows a market‑rate loan lasting up to 36 months for the developer known as Lance Kashian and Co., which has also done business as Uptown LLC for this site. The planned building would contain 54 market‑rate apartments and a rooftop pool, and city officials described the design as a high‑end addition to downtown.
Why the city is stepping in
City leaders say local construction costs and financing hurdles have made downtown housing projects difficult to complete. Developers face rising building expenses, and rents in some downtown locations may not immediately cover those costs, creating a shortfall between construction loans and long‑term financing. The proposed bridge loan is targeted at that short gap in construction financing to help get vertical construction underway.
Where the money would come from
Funds for the bridge loans would come from state grants aimed at accelerating downtown housing. The loan pool would draw on a larger infrastructure grant commitment that the city has already begun to receive, including a portion of a $250 million grant from which the city has obtained $150 million so far. The loans would carry typical market‑rate interest and be limited to no more than 36 months.
How many projects and next steps
The mayor indicated the loan program could be made available to up to four other downtown projects to clear similar financing gaps, though he did not identify those projects or specify loan sizes. The city plans to issue a notice of funding opportunity to invite developers to apply for gap financing of up to 36 months. The administration is taking the request to the city council for approval.
Project history and current status
The lot at Van Ness Avenue and Stanislaus Street has been vacant for years. Before it sat empty, it housed a gas station; that structure was demolished and the underground tank removed by a local business owner who once planned a parking structure. In 2015 the city transferred two parcels for a housing project under a development agreement, but that agreement expired in 2019. The current developer, operating as Uptown LLC, received building plan approvals last month for the new apartment project.
In October 2024 the city issued a notice of default to the developer because little progress had been made. City staff typically give builders six months to address such notices, but because no construction had occurred the city granted an extension and set specific demands. Uptown LLC satisfied four of the city’s demands, and city officials said they are optimistic the project will move forward. Officials also warned that if the developer does not make progress, the city will reclaim the land.
Developer responses
Representatives for the developer declined to comment on the proposed bridge loan and project timeline. A prior business owner involved with the site did not respond to a request for comment.
Broader financing context
Short‑term bridge loans are commonly used in real estate to cover timing gaps between construction and permanent financing or to refinance existing debt while a borrower secures long‑term loans. In recent regional deals, specialized bridge lenders have funded large transactions for residential and senior housing portfolios, showing demand for temporary capital in the local market. City leaders are framing this program as a targeted use of public grant funds to unlock stalled private investment in downtown rental housing.
What happens if the project stalls
The city made clear that the bridge financing is conditional and time‑limited. If construction does not start or the developer fails to meet contract requirements during the bridge period, the city may move to reclaim the property and pursue other options to ensure the site contributes to downtown housing goals.
Timeline and decision points
The mayor will forward the 36‑month bridge loan plan to the city council for approval. If the council approves, the city will publish the funding opportunity notice for downtown developers and begin accepting applications for gap financing. Officials hope the program will accelerate multiple downtown projects and lead to visible construction activity in the near term.
FAQ
What project is this loan aimed at?
The loan targets a planned 54‑unit market‑rate apartment building at 1506 Van Ness Ave, developed by Lance Kashian and Co., doing business as Uptown LLC.
How long would the loan last?
The proposed loans would be market‑rate bridge loans lasting no more than 36 months.
Where will the money come from?
Funding would come from state grant money allocated to accelerate downtown housing, including portions of a larger infrastructure grant the city has received.
What if the developer does not build?
If the developer fails to meet the financing or construction conditions, the city may reclaim the property and pursue alternative plans for the site.
Will other projects be eligible?
The mayor indicated up to four other downtown projects could be eligible, but specific projects and loan sizes were not named.
Key project features
| Feature | Detail |
|---|---|
| Address | 1506 Van Ness Ave |
| Units | 54 market‑rate apartments |
| Amenity | Rooftop pool |
| Developer | Lance Kashian and Co. (Uptown LLC) |
| Loan type | Market‑rate bridge loan |
| Loan term | Up to 36 months |
| Funding source | State grants for downtown housing, part of a larger infrastructure grant |
| City action if stalled | City may reclaim property |
Deeper Dive: News & Info About This Topic
Additional Resources
- GV Wire: Will downtown Fresno lot finally become housing?
- Wikipedia: Downtown Fresno
- ConnectCRE: MonticelloAM closes $8.7M bridge loan on Fresno assisted living
- Google Search: assisted living financing Fresno
- Shopping Center Business: Gantry arranges $26M refinancing for retail center in Southern California
- Google Scholar: commercial real estate refinancing Southern California
- ABC30: Bitwise Industries downtown Fresno employees furloughed (WARN Act)
- Encyclopedia Britannica: WARN Act
- San Francisco Chronicle: High-speed rail private financing discussion
- Google News: California high-speed rail private financing
Author: Construction CA News
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