Buchanan Mortgage Holdings Provides $18 Million Bridge Loan for USC Student Housing Development
Buchanan Mortgage Holdings, LLC (BMH), an affiliate of Buchanan Street Partners, L.P., provided an $18 million bridge loan for a 13-parcel assemblage in Exposition Park, directly across from the University of Southern California (USC) campus in Los Angeles, CA. The assemblage includes 12 existing multifamily buildings with 76 units and one surface parking lot.
Ventus Group, the sponsor, is securing entitlements for nine of the 13 parcels to develop a seven-story, 209-unit investment-grade student housing project on Figueroa Street, adjacent to the USC Coliseum. Additionally, the sponsor will renovate historically designated apartment buildings on the remaining four parcels and construct six detached accessory dwelling units (ADUs) to be marketed to USC students.
“We are thrilled to provide bridge financing for 3800 Fig and forge a new lending partnership with Ventus Group,” said SVP Chris Cervisi. “We have strong confidence in Ventus Group’s expertise and the prime location of their asset for purpose-built student housing, particularly with USC’s 2024 transition to the Big Ten conference.”
Class A, purpose-build student housing at major universities have experienced significant growth driven by rising demand for premium amenities and limited supply near college campuses. The sponsor proved they’re capable of executing this business plan one block south of the subject where they entitled and sold the site for The Standard at Los Angeles (approved for 429-units) to Landmark Communities which is now mid-construction, scheduled to be completed in 2026. Ventus’s current project will benefit from a higher FAR, lower parking requirement, and lower commercial requirement than The Standard—adding further value to the subject.
“This financing reflects BMH’s value-add lending approach, partnering with an experienced sponsor, Ventus Group, who adeptly leverages Los Angeles’ zoning regulations to maximize investment value. Additionally, we continue to uphold our commitment to capital preservation by conservatively structuring the loan to mitigate entitlement risk.”
ABOUT BUCHANAN MORTGAGE HOLDINGS, LLC
Buchanan Mortgage Holdings, LLC, an affiliate of Buchanan Street Partners LP, originates non-recourse bridge and construction loans for the acquisition, development, renovation, recapitalization or refinance of commercial real estate located in primary and secondary Western U.S. and Texas markets. The company utilizes its own balance sheet and fully discretionary lending capabilities to provide certainty of execution within short timeframes, flexible loan structures and creative financing solutions. Our extensive experience as an owner and operator of commercial real estate allows us to understand what our borrowers need to successfully execute their business plans and maximize the value of the underlying real estate.
