LOS ANGELES — Los Angeles-based J.H. Snyder Co. has broken ground on The Vermont, a $200 million, 464-unit high-rise apartment complex with retail space and public open space. The project is located in the Koreatown district of Los Angeles and is the largest residential development to be built in the city since the beginning of the downturn. Completion is slated for 2014.
Located at a long-vacant, two-acre property on the southeast corner of Wilshire Boulevard and Vermont Avenue, the LEED-certified project will feature two high-rise towers, a quarter-acre central courtyard, approximately 40,000 square feet for ground-floor retailers, underground parking, a shared workspace, a pool and a high-end gym and spa. The retail component will include restaurants, a grocer, bank, dry cleaner and coffee house.
“Given the economic challenges of the past several years, we are thrilled to begin construction on a mixed-use community of this scale and quality,” said Jerry Snyder, senior partner at J.H. Snyder Co. “This is a significant investment that will transform the long-vacant two-acre dirt lot into the new heart of one of LA’s most energetic neighborhoods.”
Los Angeles is slated to add approximately 2,900 new multifamily units this year, a 0.4 percent increase in Los Angeles’ overall multifamily inventory. There were 1,680 units added last year, according to Marcus & Millichap, and The Vermont’s construction is anticipated to create more than 1,800 union construction jobs in the short term.
“It feels great to move a significant, job-creating project forward at a time when new construction activity of this scale is rare,” Snyder added.
J.H. Snyder Co. had to rely on a complicated capital arrangement in order to get the green light to build the project, which has been 2 years in the making. Washington Capital Management is the lead equity investor, and J.H. Snyder invested some equity into the project as well. Also, JPMorgan closed on a construction loan and Bentall Kennedy closed on a mezzanine loan at the end of 2011 for the project.
“We are excited to see The Vermont move forward, especially in light of the difficult lending environment we face today,” said Kacy Keys, senior vice president and general counsel at J.H. Snyder Co. “It took a very complex financial structure, the ongoing support of Councilman Herb Wesson and the backing of our great partners Washington Capital Management, JPMorgan and Bentall Kennedy to make The Vermont a reality. Their willingness to be a part of The Vermont through the ups and downs of the past year speaks to the quality of this project and the confidence they all have in J.H. Snyder as a developer.”
Approximately 1 year ago, the Los Angeles City Council and the Community Redevelopment Committee voted unanimously to approve The Vermont. The council cited J.H. Snyder Co.’s effort to involve the local community in the planning process and the delivery of a community benefits package as validation for approval.
“I applaud the hard work of J.H. Snyder and the company’s capital partners in moving this critical project forward,” said Los Angeles City Council president Herb Wesson. “The Vermont will be a welcome addition to the community, and we look forward to seeing this incredible project come to fruition.”
The Vermont will also feature 77 non-reserved public parking spaces in the garage, as well as 12,000 square feet of open public space along Wilshire Boulevard. As part of the project build-out, J.H. Snyder Co. will make a $1 million contribution to help fund a community center in the area and contribute efforts toward the creation of 96 affordable housing units elsewhere in Koreatown.
“This project has been a long time coming,” said Michael Wise, senior partner at J.H. Snyder Co. “So we are excited to be moving to the next stage in the development process and to be that much closer to injecting new life into this already vibrant community.”
— John Nelson