Complex and creative financing leads to the development of 248 units of affordable housing and commercial space for minority-owned businesses
A new mixed-use, affordable housing development is underway in Los Angeles’ Little Tokyo neighborhood. Go For Broke Plaza and First Street North Residences will provide 248 units of affordable housing plus approximately 40,000 square feet of commercial space that will house the National Education Center and local minority-owned businesses.
“This project is among the largest 100% affordable housing developments to be built in the City of Los Angeles,” said Director of Real Estate, Debbie Chen. “Beyond that, it is the realization of a Little Tokyo community vision that has been decades in the making, ever since this site was taken from the neighborhood in the aftermath of Japanese American internment during World War II.”
Lisa Gutierrez, director of business development, affordable housing, for U.S. Bancorp Impact Finance, giving remarks at the groundbreaking.
U.S. Bancorp Impact Finance is the equity investor in the New Markets Tax Credit (NMTC) transaction and the two Low-Income Housing Tax Credit (LIHTC) deals related to the project, and is providing the construction debt for the LIHTC transaction. For this development, over $83 million in debt and over $85 million in equity financing was committed through the four different transactions.
A longtime partner of Little Tokyo Service Center since 2009, ɫƵ has provided $466,000 through charitable giving programs over the years to support the important work they do.
“It was a privilege to lean into this complex financial deal to help drive change,” said Impact Finance Business Development Officer Drew Hammond. “My hope is that the project will not only preserve affordability for Little Tokyo residents and legacy businesses, but also stand as a symbol of reclamation and celebration of Little Tokyo’s history.”
Little Tokyo is in downtown Los Angeles and is home to one of the largest Japanese-American populations in North America. Portions of the neighborhood were declared a National Historic Landmark District in 1995. The Go For Broke Plaza and First Street North Residences project site has been designed to wrap around and prominently display the Go For Broke Monument that commemorates Japanese Americans who served in the United States Army during World War II. Eighty of the 248 units for residents will be designed for people with special needs, including units for veterans and people with AIDS. Some of the small businesses will include retail shops and restaurants that have been in the area for generations.
Equal Housing Lender