LOS ANGELES — Barings has provided a $160 million construction loan alongside $155.5 million in C-PACE financing from a subsidiary of Counterpointe Sustainable Advisors for the development of Habitat, a “live-work-thrive” campus in Los Angeles. Lendlease is developing the project, which will include creative office space, luxury apartments, retail and an integrated park.
Located at 3401 S. La Cienega Blvd. and offering immediate access to the LA Metro and Expo Bike Path, Habitat is situated where Culver City meets the heart of Los Angeles. Upon completion, which is slated for early 2026, the property will feature a six-story, 253,000-square-foot creative office building and a 12-story, 260-unit multifamily building. There will also be restaurant, retail and amenity space.
Habitat will feature a unique terraced design along with walking paths, indoor-outdoor workspaces, integrated green spaces and private outdoor terraces.
Lendlease is targeting LEED Gold certification for the residential building and LEED Platinum for the commercial portion. The project is certified Net Zero Carbon in construction and operations. Plans call for solar panels, 64 dedicated electric vehicle parking spots, 222 secured bike parking spaces and onsite stormwater treatment and infiltration.
The $160 million senior loan features a five-year term, and the $155.5 million C-PACE financing has a 30-year term. C-PACE refers to Commercial Property Assessed Clean Energy and is a financing tool that provides long-term, low-cost construction financing for new and existing buildings. Eligible improvements include energy efficiency, water efficiency and renewable energy.
“Our integrated offering of C-PACE and construction mortgage full-stack financing encourages borrowers to construct green buildings and finance sustainable projects with competitive rates, efficient process and certainty of execution,” says Eric Alini, CEO of Counterpointe.
Justin Preftakes, head of construction lending at Barings, says he sees significant opportunity in construction lending given the pullback from more traditional sources of capital combined with high barriers of entry.
A global asset management firm, Barings had $409 billion in assets under management as of June 30. Counterpointe, a majority-owned subsidiary of MassMutual, offers mortgages, PACE financing and other energy financial tools.
Lendlease is an integrated real estate group with operations in Australia, Asia, Europe and the United States. Lendlease acquired the project site in the fourth quarter of 2020 and commenced construction in the second quarter of 2023.
— Kristin Harlow