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LOS ANGELES-The Los Angeles-based Borman Group has landed a $19.6 million construction loan from a San Francisco-based bank to finance the 39-unit Barn Lofts condominium project, according to Highland Realty Capital. Highland reports that the loan will provide 75% loan-to-cost financing for the project, which will convert a former sugar warehouse at 940 E. Second St. into live/work lofts.

Mike Guterman, a Highland principal, points out that obtaining construction financing for attached residential projects "has been very difficult over the past few months." However, Guterman says, Highland was able to get the San Francisco-based bank "comfortable with the pricing of other projects in the market and their relative exposure on a price per square foot basis."

Guterman tells GlobeSt.com that financing deals for smaller projects like the 39-unit Barn Lofts stand a better chance of getting done because "absorption is manageable," in contrast with larger projects. Guterman points out that the lender stood by its 90-day commitment to fund the loan, which was originally approved at the end of July.