LOS ANGELES—Trumark Urban has broken ground on a 22-story, 151-unit multifamily condo development in Downtown Los Angeles. The development will cost approximately $110 million, and Trumark Urban secured a $77.8 million construction loan to fund the project. The property will come online sometime in 2016.

Construction began last week, immediately after the developer secured the construction loan. PCCP secured the funds on behalf of the developer, and John Manning and Chris Casey of JLL Capital Markets arranged the loan.

“While developers are placing significant bets on the rising demand for rental units in Downtown LA, there have been very few new condo units developed in the area,” Ron Bonneau, SVP with PCCP, tells GlobeSt.com. “As housing prices continue to rebound in Los Angeles, the borrower sees the opportunity to be one of the first new condo projects to market in downtown, where there has been no significant new supply delivered since before the downturn and inventory of for-sale housing units is at its lowest level in over five years.  The ability to provide financing to Trumark—an experienced firm with a strong track record—on a site, which will be one of the first to market was attractive to PCCP.”

Located at 1050 S. Grand Ave. in Downtown Los Angeles, the property will have a mix of one-, two- and three-bedroom units located on floors six through 22. The ground floor will feature 5,672 square feet of retail space, while the fifth floor will house a fitness center, swimming pool, cabanas and other common areas for the residents. It is located in the South Park neighborhood only three blocks from the Staples Center and LA LIVE.

This is only one of two condo projects currently under development in the downtown market, with the inventory of for-sale properties at the lowest in level in five years. However, that isn't to say that there weren't concerns. “There are currently over 3,200 condo units approved for development in Downtown L.A. with nearly another 1,000 units proposed,” Bonneau says. “Not all of these projects will be delivered, but there were a lot of challenges in getting comfortable with the potential competitive projects. The fact that this development started construction immediately after the loan funded and that it will be one of the first to market, gave us comfort in its ability to sellout quickly.”