Feb. 16 (Bloomberg) -- 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.
Resmark Cos., based in Los Angeles, is working with Related on the condominiums, while Community Corp. of Santa Monica is its partner on the rental portion.
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.
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