Proposed 54-unit market-rate apartments at 1506 Van Ness Ave, planned with a rooftop pool to serve downtown residents.
1506 Van Ness Ave, August 13, 2025
City leaders propose a 36-month market-rate bridge loan to help the developer begin construction of a planned 54-unit market-rate apartment building at 1506 Van Ness Ave, featuring a rooftop pool and upscale amenities. Funds would come from state housing and infrastructure grants to fill short-term financing gaps so permanent construction loans or equity can be secured. The plan would also allow similar loans for other downtown projects. City officials emphasize the municipality’s right to reclaim the site if the developer fails to meet required milestones or make meaningful progress.
City leaders want to unlock a stalled downtown project by offering a short-term, market-rate bridge loan to the developer of a 54-unit apartment building planned at 1506 Van Ness Ave. The proposal would let the city provide construction gap financing for up to 36 months and would apply first to the project run by Lance Kashian and Co., doing business as Uptown LLC. City officials say the aim is to get the project moving quickly and to protect public interests if development stalls.
Building plans for the lot at Van Ness Avenue and Stanislaus Street were approved last month for a 54-unit, market-rate apartment complex that includes a rooftop pool. The city is preparing a formal plan to present to the city council for approval that would allow a 36-month bridge loan at typical market interest rates. Funding would come from state grants already allocated to accelerate housing in the downtown area, including money from a previously promised infrastructure grant that totals $250 million of which the city has received $150 million so far.
City leaders say the main hurdle for downtown housing projects is the rising cost of construction and the difficulty of making projects work on the expected rent levels downtown. That mismatch leaves short-term gaps in construction financing. The bridge loan plan is intended to plug those gaps so approved projects can start building rather than remain empty lots.
The mayor intends to offer the same type of short-term market-rate loan to up to four other downtown projects, though he has not yet named those projects or specified loan sizes. The city plans to publish a notice of funding opportunity to allow developers to apply for gap financing that would not exceed 36 months. City officials say loans would carry market-rate interest and include normal borrower protections. The plan also includes a clear warning that the city may reclaim the land and assign another developer if a borrower fails to deliver on promised progress.
The site at 1506 Van Ness Ave was long vacant after operating as a gas station. A local business owner associated with Catalyst Communications removed the underground tank and demolished the former station years ago. In 2015, under an earlier administration, the city gave two parcels tied to the site to that owner under a development agreement that shifted the intended use toward housing. That earlier agreement expired in 2019, after which Lance Kashian and Co. joined the effort and took the project forward under the Uptown LLC name.
In October of last year the city issued a notice of default to Uptown LLC because little construction activity had happened. The usual notices provide a six-month window to meet requirements; in this case the city granted an extension beyond that period while Uptown LLC satisfied four outstanding demands. A company spokesperson declined to comment for the record on the new loan proposal or project timing. City leaders say they remain optimistic the development will proceed but are prepared to take back the property if the project does not move forward.
Money for the bridge loans would come from state grant dollars set aside to speed up downtown housing. Officials intend to use portions of the larger infrastructure grant package to underwrite the short-term funds. Loans would be limited to 36 months and carry standard market interest. The city will formalize criteria and open applications through a public notice process to distribute gap financing on a competitive basis.
Short-term bridge lending has been used recently in the region for other housing types, including seniors housing, where large bridge loans were arranged to refinance debt and position properties for long-term financing. That broader activity highlights a growing role for bridge capital as developers and lenders seek ways to cover timing mismatches between construction costs and permanent funding sources.
City leaders will present the bridge loan plan to the city council for approval. If approved, the city will release a notice of funding opportunity and start taking applications for short-term gap financing for downtown projects. The proposed loans would be temporary tools to move shovel-ready projects into construction within the 36-month term. If developers fail to meet agreed milestones, city officials say they have the authority to reclaim parcels and pursue alternate development paths.
A city-sponsored market-rate bridge loan program that would lend gap financing for up to 36 months to help restart a 54-unit market-rate apartment project at 1506 Van Ness Ave.
The project is being developed by Lance Kashian and Co., operating as Uptown LLC.
Funds would come from state grants earmarked for downtown housing acceleration, including money from a larger infrastructure grant package the city has already begun receiving.
Yes. The city plans to charge typical market-rate interest on the bridge loans.
The city has authority to reclaim the property and seek alternate development if required project milestones are not met.
City leaders plan to make the program available to additional downtown projects, potentially up to four more, through a competitive notice of funding opportunity.
| Feature | Details |
|---|---|
| Project address | 1506 Van Ness Ave |
| Planned units | 54 market-rate apartments |
| Amenities | Rooftop pool |
| Developer | Lance Kashian and Co. (Uptown LLC) |
| Loan type | Market-rate bridge loan |
| Loan term | Up to 36 months |
| Funding source | State grants for downtown housing, including a portion of a larger infrastructure grant |
| City safeguards | Ability to reclaim property if developer fails to meet milestones |
| Current status | Building plans approved; bridge loan plan to be presented to city council |
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