A unit of Related Cos., the developer of Manhattan’s Time Warner Center, started construction on a $350 million residential project near the Santa Monica, California, oceanfront.
The Village at Santa Monica will encompass 158 luxury condominiums and 160 income-restricted rental apartments as well as retail, restaurants and pedestrian plazas, Related California said today in a statement.
The project, expected to be finished in January 2014, will be the first large residential development on Santa Monica’s Ocean Avenue since 1994, when a 31-unit building was completed, according to Karen Diehl, a Related spokeswoman. The area has been home to revitalization efforts including the $55 million Palisades Garden Walk & Town Square recreation area, slated for completion next year. Santa Monica Place, an outdoor shopping center, reopened in August 2010 after a $265 million makeover.
“The Santa Monica submarket has held up better than any other market in Southern California,” Related California President William Witte said in a telephone interview. “Santa Monica reads more like San Francisco and Silicon Valley. It has the Bay Area-type job growth in social media, entertainment and technology, and it’s located at the coast.”
Starting prices for the condos will be about $700,000 to $800,000, Diehl said. The rental units will be limited to tenants whose incomes are below 60 percent of the local median, which is currently $50,580 for a family of four, she said.
Wells Fargo & Co. and HSBC Holdings Plc provided a $172 million construction loan for the project. About $120 million of the debt will be used for the condo portion, with the remainder for the apartments, Witte said.