Santa Monica, Calif., August 20, 2025
News Summary
JLL Capital Markets arranged a $28.5 million construction loan on behalf of Vernon Group to convert the existing building at 201 Town Center East into The Lofts, a 104-unit Class A multifamily project in downtown Santa Monica. Units will range from 600 to 1,200 sq ft and be organized around a central courtyard with double-loaded corridors. The financing supports Phase I of the Santa Maria Town Center master-planned redevelopment, intended to add housing, activate the streetfront, and strengthen walkable urban living in the downtown core, with construction targeted for completion in June 2027.
JLL Capital Markets Secures $28.5M Construction Loan for The Lofts, a 104-Unit Class A Conversion in Downtown Santa Monica
SANTA MONICA, CALIF. — Construction financing of $28.5 million has been secured for The Lofts, a 104-unit Class A multifamily conversion in downtown Santa Monica. The loan was arranged by JLL Capital Markets on behalf of the borrower, Vernon Group of Santa Barbara, Calif. The project is a part of Phase I of the Santa Maria Town Center master-planned expansion initiated by the City of Santa Monica to revitalize the downtown core.
What the financing covers and project basics
The financing will support the conversion of the existing building at 201 Town Center East into a courtyard-style multifamily property featuring 104 loft-style apartments. Apartment units will range in size from 600 square feet to 1,200 square feet. The design will convert the structure into a courtyard format with double-loaded corridors serving the apartment units. Construction is slated for completion in June 2027.
Who arranged the loan
JLL Capital Markets represented the borrower in securing the construction financing. The JLL team working on the transaction included Matt Stewart, Alex Olson, Ace Sudah, Kyle White and Jacob Michael. The borrower is Vernon Group, a development firm based in Santa Barbara, Calif., which is leading this conversion work for Phase I of the Santa Maria Town Center redevelopment.
Context within the Santa Maria Town Center redevelopment
The Lofts is part of a larger, master-planned expansion known as the Santa Maria Town Center redevelopment, a municipal effort started by the City of Santa Monica to breathe new life into the downtown core. Phase I includes a mix of redevelopment activities that aim to add housing, improve public spaces, and refresh the urban fabric of the Town Center area. The Lofts will provide Class A rental housing stock oriented toward loft-style living, positioned to serve local renters and professionals seeking central access to downtown amenities.
Design and timeline details
The existing structure at 201 Town Center East will be adapted rather than torn down, emphasizing conversion to a courtyard plan that improves light and circulation. The layout will employ double-loaded corridors to maximize unit count while creating a centralized courtyard amenity. The unit mix from 600 to 1,200 square feet is designed to offer a range of one-bedroom and larger loft-style floor plans. Developers expect construction completion by June 2027, after which lease-up and occupancy phases will follow.
Broader industry context
This financing and conversion reflect ongoing interest in infill redevelopment and adaptive reuse within high-demand coastal markets. Alongside local projects like The Lofts, the industry calendar includes a series of professional gatherings and webinars covering multifamily, industrial, seniors housing, student housing design and healthcare real estate. These events serve as forums for sharing market trends, financing strategies, development practices and operational best practices across regions including Houston, Phoenix, Austin, Dallas-Fort Worth, Las Vegas and the Southeast.
What comes next
With construction financing secured, Vernon Group and project partners will proceed with permitting, contractor selection and construction mobilization. Stakeholders will track the schedule toward the targeted June 2027 completion date. Once finished, The Lofts will add 104 Class A loft-style residences to downtown Santa Monica’s housing supply as part of the broader civic goal to revitalize the Town Center area.
Frequently Asked Questions (FAQ)
Q: Who arranged the construction financing for The Lofts?
A: JLL Capital Markets secured the $28.5 million construction loan on behalf of the borrower, Vernon Group.
Q: Where is The Lofts located?
A: The project is located at 201 Town Center East in downtown Santa Monica, Calif.
Q: How many units will The Lofts contain and what are the unit sizes?
A: The Lofts will feature 104 loft-style apartments with unit sizes ranging from 600 to 1,200 square feet.
Q: What type of project is The Lofts and what conversion work is planned?
A: The Lofts is a Class A multifamily conversion. The existing building will be converted to a courtyard format with double-loaded corridors to serve the apartments.
Q: What is the construction completion target?
A: Construction is slated for completion in June 2027.
Q: Who are the key team members from JLL on the transaction?
A: The JLL team representing the borrower included Matt Stewart, Alex Olson, Ace Sudah, Kyle White and Jacob Michael.
Q: How does The Lofts fit into the wider redevelopment?
A: The Lofts is a component of Phase I of the Santa Maria Town Center master-planned expansion initiated by the City of Santa Monica to revitalize the downtown core.
Key Project Features
| Feature | Details |
|---|---|
| Project Name | The Lofts |
| Location | 201 Town Center East, Downtown Santa Monica, Calif. |
| Loan Amount | $28.5 million |
| Borrower / Developer | Vernon Group (Santa Barbara, Calif.) |
| Units | 104 loft-style apartments |
| Unit Sizes | 600 to 1,200 sq ft |
| Design Features | Courtyard conversion; double-loaded corridors |
| Completion Target | June 2027 |
| JLL Team Members | Matt Stewart, Alex Olson, Ace Sudah, Kyle White, Jacob Michael |
| Redevelopment Phase | Phase I of the Santa Maria Town Center master plan |
Deeper Dive: News & Info About This Topic
Additional Resources
- Los Angeles Times — Search: The Lofts Santa Monica
- Wikipedia: Santa Monica, California
- City of Santa Monica — Search: Santa Maria Town Center
- Google Search: Santa Maria Town Center Santa Monica
- JLL — Search: The Lofts Santa Monica
- Google Scholar: adaptive reuse multifamily conversion
- Commercial Observer — Search: The Lofts Santa Monica
- Encyclopedia Britannica: adaptive reuse
- Google News: The Lofts Santa Monica
- Google Search: The Lofts 201 Town Center East Santa Monica
Author: Construction TX News
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