Accretive Residential Becomes Key Strategy in LA County
Accretive residential projects are becoming a strategy in LA County, as developers deal with elevated construction costs and borrowing.
Securing deals with acceptable economics requires expert knowledge and experience.
Vertically integrated builders can make margins where others can't and locate deals where others can't underwrite, Karl Weidell, Northmarq's vice president, told GlobeSt.com.
"Given the significant supply issue LA County faces, debt markets are extremely aggressive on market-rate projects," he said.
One Accretive residential project is taking place now in Arcadia, California— as part of the LA metro area. This week, Northmarq's Los Angeles Debt + Equity team, led by Weidell, arranged a $14.8 million construction loan at 85% loan-to-cost for a 24-unit condominium development.
Northmarq arranged the financing on behalf of the borrower, an unnamed vertically integrated real estate development firm, via a debt fund execution.
The project is situated on approximately 0.63 acres in Arcadia, one of the San Gabriel Valley's most established residential communities. Planned for completion in 2027, the property spans four buildings totaling over 43,000 square feet.
It is located in the Western San Gabriel Valley submarket and benefits from proximity to major transportation corridors connecting residents throughout the LA metro.
The location also offers convenient access to a wide range of retail, dining and entertainment destinations throughout Arcadia.
Arcadia Has Active Condo Development Year
The move comes as Arcadia has seen several notable condominium developments in 2026.
According to Hoodline, the city approved the North Village project at 225 N. Second Avenue, a six-story, 130-unit for-sale condominium development located one block from the Metro A Line station, with construction scheduled to begin in early 2027 and finish in late 2028.
Hoodline reported that the project will include studios through three-bedroom units, 187 parking spaces, over 17,000 square feet of amenities, ground-floor commercial space and 20 deed-restricted affordable units reserved for households earning up to 80 percent of area median income.
The Real Deal corroborated the approval and added that the project is being developed by an entity affiliated with Giantech Construction under SB 79, which encourages transit-oriented multifamily housing near qualifying transit hubs.
Another significant condominium development approved in 2026 was the Colorado Collection, an 86-unit townhome project at 201 and 225 Colorado Place, as reported by Citizen Portal.
The Arcadia City Council approved the project on March 17, including nine deed-restricted moderate-income units and several waivers under SB 330 to facilitate infill development on a site previously occupied by a Motel 6.
A third project, documented through planning records, is the 101 W. Huntington Dr. development, where the City Council approved 34 for-sale condominiums in January 2026.
The project includes three four-story buildings, attached two-car garages and two very-low-income units, replacing a single-tenant commercial building on a 1.06-acre parcel.
Source: GlobeSt/ALM