Echo Park, Los Angeles, September 22, 2025
News Summary
A Los Angeles developer closed a $46.6 million construction loan to build The Court Residences, a 189-unit workforce housing project in Echo Park targeted primarily at households earning up to 80% of AMI. The financing combines senior debt from a national bank community development division with mezzanine funds from a nonprofit capital intermediary and a municipal finance authority. The developer used private capital and density incentives to limit per-unit costs to about $247,000 and avoid certain public wage rules. Groundbreaking is complete and construction is underway, with rents expected roughly 30–40% below neighborhood market rates.
The Court Residences in Echo Park Secures $46.6 Million in Construction Financing
A new 189-unit affordable apartment project in Echo Park has secured construction financing and started onsite work this month. The developer closed on a $46.6 million loan package to build The Court Residences, marking the firm’s first affordable multifamily project in the city.
Financing and partners
The construction financing is a mix of senior debt and mezzanine financing. Senior debt was provided by the community development banking arm of a major national bank. Mezzanine financing came from two mission-focused finance organizations. Together the package covers the construction phase and allows the project to move forward after a recent groundbreaking.
Project basics and affordability
The Court Residences will deliver 189 units set aside as workforce housing for households earning up to 80% of the area median income (AMI). The development’s cost works out to about $247,000 per unit, a figure the developer describes as competitive for affordable housing projects in the Los Angeles region.
Design, rents and local goals
The developer is aiming for a project that blends into the neighborhood rather than feeling like a typical low-income building. Plans call for an innovative design and a range of community-oriented amenities. Rents are expected to be roughly 30% to 40% below market-rate rents in Echo Park, with unit income limits focused on households at or below 80% AMI.
How costs were kept down
The developer cites several reasons for the relatively low per-unit cost: streamlined project workflows, higher density enabled by a city program that speeds affordable housing approvals, and the decision to use only private sources of capital for this project. That private-funding approach avoids certain public labor rules that can raise construction costs.
Development team and community intent
The project is led by a local development firm based in Echo Park. Leadership includes the firm’s founder and a family member who is a professional athlete and partner on the effort. The team says the project is intended to serve workers and families who need housing close to transit, jobs and neighborhood services. The site was chosen for its walkability and proximity to downtown transit corridors.
Firm pipeline and nearby proposals
The developer reports nearly 940 units under development across the city and is studying additional sites in nearby neighborhoods. Other projects tied to the firm include a 33-unit building near a major freeway, a 90-unit project at the eastern end of a busy boulevard, and this 189-unit Court Street project. In all three of those projects, the plan is to reserve 80% of the units for households at or below 80% AMI, with the remaining units targeted to households at or under 120% AMI.
Neighborhood and market context
Echo Park is experiencing a wave of development across multifamily, office and hospitality categories. Local multifamily rents average around $1,848 per unit and vacancy remains tight. Several other residential projects in the area are planned or under construction, including new multifamily buildings ranging from under 50 units to more than 200 units, as well as smaller affordable developments and mixed-use proposals.
Next steps and schedule
Groundbreaking has already taken place and construction will proceed under the new loan package. The developer has expressed interest in beginning additional projects in the same part of the city later this year, pending approvals and financing. The team plans to open the building with a mix of workforce-targeted units and community amenities meant to integrate with the surrounding neighborhood.
FAQ
What is The Court Residences?
The Court Residences is a 189-unit workforce housing project in Echo Park that recently closed on construction financing and began construction.
How much financing was secured?
The project secured a total of $46.6 million in construction financing made up of senior debt and mezzanine loans.
Who is eligible to live in the building?
The units are designated for households earning up to 80% of area median income, with some units available to households at or below 120% AMI as part of the broader pipeline approach.
How affordable will rents be compared to market rates?
Rents at the project are expected to be roughly 30% to 40% below Echo Park market-rate rents for comparable units.
What helped keep construction costs lower?
Key factors include streamlined project processes, a city density program that enables more units on the site, and using private funding to avoid certain public labor requirements that increase costs.
When did construction start and what’s next?
Construction broke ground earlier this month. The developer will continue site work and construction under the new financing and plans to move forward with leasing once units are complete.
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Key Project Features
| Feature | Detail |
|---|---|
| Project name | The Court Residences |
| Location | Echo Park |
| Units | 189 |
| Target income | 80% AMI (primary), some units up to 120% AMI |
| Construction financing | $46.6 million (senior debt + mezzanine) |
| Cost per unit | ≈ $247,000 |
| Developer | Local Echo Park-based development firm |
| Design goals | Innovative design, community amenities, workforce focus |
| Market aim | Rents 30%–40% below Echo Park market rates |
| Pipeline | Developer has ~940 units under development citywide |
Deeper Dive: News & Info About This Topic
Additional Resources
- The Eastsider LA: Affordable housing in Echo Park, new Panera by LACC & other real estate news
- Wikipedia: Echo Park, Los Angeles
- Los Angeles Business Journal: LA Rising — Echo Park key projects
- Google Search: LA Rising Echo Park key projects
- The Detroit News: Pistons’ Tobias Harris joins forces with brother to help build affordable housing
- Wikipedia: Tobias Harris
- Los Angeles Times Opinion: Echo Park — homeless colony, gentrification, housing
- Encyclopedia Britannica: Echo Park (search)
- ABC7: Tenants in affordable bungalow court in Echo Park face eviction (2020)
- Google Scholar: Echo Park bungalow court eviction 2020
Author: Construction TX News
TEXAS STAFF WRITER The TEXAS STAFF WRITER represents the experienced team at constructiontxnews.com, your go-to source for actionable local news and information in Texas and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Texas Construction Expo, major infrastructure unveilings, and advancements in construction technology showcases. Our coverage extends to key organizations like the Associated General Contractors of Texas and the Texas Building Branch, plus leading businesses in construction and real estate that power the local economy such as Austin Commercial and CMiC Global. As part of the broader network, including constructioncanews.com, constructionnynews.com, and constructionflnews.com, we provide comprehensive, credible insights into the dynamic construction landscape across multiple states.
