A Los Angeles County housing project is moving closer to groundbreaking after its developer landed an eight-figure construction loan.
Azusa-based developer The Connected Companies secured $26 million in construction financing for Prospect Villa, a seven-story, 75-unit mixed-use development planned for 7539 and 7545 Garvey Avenue in Rosemead, Commercial Observer reported. Columbia Bank provided the loan, Kevin Wong of Quantum Capital Partners, which arranged the financing, confirmed to CO. The parcel is owned by Del Mar Property, an entity managed by local developer Gerard Ngo.
When complete, Prospect Villa will deliver 75 one-, two-, three- and four-bedroom apartments atop roughly 6,350 square feet of ground-floor retail, “addressing the housing needs of Rosemead” while “transforming [the] underutilized site into a vibrant community hub,” Wong said. The location is currently a vacant lot.
The financing arrives amid an uncertain capital markets environment as higher interest rates and elevated construction costs present obstacles to development. At the same time, developers and institutional investors have been turning their attention outside Los Angeles city limits to communities like Rosemead to avoid hurdles like Measure ULA. “Securing construction financing in today’s capital markets requires a compelling sponsor and a project that truly fits the local demographic,” Wong said.
Site owner Ngo is no stranger to Rosemead, and this stretch of Garvey Avenue in particular. In 2023, Ngo, acting through his Green Park Property firm, filed plans to build 93 apartments with 5,400 square feet ground-floor retail and restaurants at 7849-7857 Garvey Avenue and 7900-7916 Virginia Street. The project would replace a row of small commercial buildings at Garvey and Del Mar avenues and boast one, two- and three-bedroom units.
The average rent in the San Gabriel Valley is $2,039 a month, well below the overall L.A. County average of $2,336, according to a third-quarter market report from Lee & Associates cited by CO. Compared to a year ago, there are also more apartment buildings on the market as owners face strict rent control laws, rising cost of ownership and higher utility costs and insurance premiums. — Chris Malone Méndez
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