$44 Million in Financing Secured for Los Angeles Multifamily Properties
Los Angeles’ competitive multifamily housing market has seen another significant investment, with $44 million in financing secured for two apartment complexes in the San Fernando Valley. The deals, finalized earlier this month, underscore continued strong demand for high-quality rental properties in the region, even as broader economic conditions remain uncertain. The financing will support both existing properties and new developments, reflecting a broader trend of investment in amenities and tenant retention strategies.
The financing was arranged by IPA Capital Markets, a division of Marcus & Millichap, and provided by an unnamed national bank. This transaction highlights the ongoing appeal of the Los Angeles area for investors seeking stable returns in the multifamily sector. The San Fernando Valley, in particular, has emerged as a key area for investment, representing a substantial portion of the overall Los Angeles market. The deals involved five-year fixed-rate, non-recourse loans, offering stability for both the borrower and the lender.
Moderno Axis and La Granada Hills Receive Funding
The financing is split between two properties: Moderno Axis, located at 7650 Van Nuys Blvd., and Moderno La Granada Hills, situated at 17454 Chatsworth St. Moderno Axis, a 126-unit complex, received approximately $28.3 million in funding, while the newly constructed Moderno La Granada Hills, boasting 540 units and retail space, secured just over $15.7 million. Marcus & Millichap’s IPA Capital Markets announced the arrangements on Wednesday.
Interest rates for the loans were locked in at 5.4% for Moderno Axis and 5.6% for Moderno La Granada Hills, providing borrowers with predictable financing costs over the loan term. Anita Paryani-Rice, a senior managing director at IPA Capital Markets, emphasized that the lender’s confidence in the properties’ performance, coupled with their desirable locations and premium amenities, enabled the firm to negotiate favorable terms for its clients. “The lender recognized the properties’ strong performance, premier amenities and exceptional locations,” Paryani-Rice stated, “enabling us to secure highly competitive terms and structure a solution aligned with our client’s longterm strategy.”
Amenities Drive Investment in the San Fernando Valley
The success of these financing deals reflects a broader trend in the San Fernando Valley, where developers and owners are increasingly focused on enhancing properties with sought-after amenities. Both Moderno Axis and Moderno La Granada Hills feature a range of upscale additions, including on-site pet grooming spas and media theaters, designed to attract and retain tenants. This strategy is driven by the desire to maximize return on investment and create a competitive advantage in a crowded rental market. The emphasis on amenities is not merely cosmetic; it’s a response to evolving tenant preferences and a recognition that quality of life is a key factor in rental decisions.
According to Paryani-Rice, the financing demonstrates the continued strong demand for high-quality multifamily assets in Los Angeles. “This financing reflects the strong demand we continue to see for highquality multifamily assets in Los Angeles,” she said. This demand is fueled by a combination of factors, including population growth, limited housing supply, and a strong local economy.
San Fernando Valley Leads Multifamily Investment Growth
The San Fernando Valley has emerged as a particularly bright spot in the Los Angeles multifamily market. In 2025, the Valley accounted for roughly one-third of all multifamily sales in the Los Angeles metro area, according to data from Northmarq. Several transactions in the Valley closed between $125 million and $185 million, indicating significant investor interest in the area. Per-unit prices in the Valley also experienced a 4% increase, reaching $318,200, while median prices across Los Angeles as a whole saw a 2% decline.
This growth in the San Fernando Valley is attributed to several factors, including its relatively affordable housing costs compared to other parts of Los Angeles, its convenient location, and its access to major employment centers. The Valley’s diverse economy, which includes industries such as aerospace, healthcare, and entertainment, also contributes to its appeal as an investment destination.
Broader Trends in Los Angeles Multifamily Investment
The surge in multifamily investment in Los Angeles extends beyond the San Fernando Valley. Multifamily investment in the city increased by 52% in 2025 compared to the previous year, demonstrating a robust and expanding market. This growth is driven by a combination of factors, including strong demand for rental housing, limited supply, and favorable financing conditions. However, experts caution that rising interest rates and economic uncertainty could pose challenges to the market in the coming months.
The Los Angeles multifamily market is closely watched by investors and analysts alike, as it serves as a bellwether for the broader real estate market. The recent financing deals for Moderno Axis and Moderno La Granada Hills are indicative of the continued strength and resilience of the market, despite ongoing economic headwinds. The focus on amenities and tenant experience is likely to remain a key trend, as developers and owners seek to differentiate their properties and attract high-quality renters.
Looking Ahead
The Los Angeles multifamily market is expected to remain active in the near term, although the pace of growth may moderate as interest rates continue to rise. Investors will likely focus on properties with strong fundamentals, desirable locations, and attractive amenities. The San Fernando Valley is poised to remain a key area for investment, given its affordability, convenience, and diverse economy. Further developments in the market will be closely monitored by industry professionals and observers.
The next major indicator to watch will be the release of first-quarter 2026 multifamily sales data by Northmarq, expected in late April. This report will provide a more comprehensive picture of market trends and investor sentiment.
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