Berkadia Arranges $132.7M Bank OZK Construction Loan for Culver City's ElevenOneEleven

Berkadia arranged a $132.7 million construction loan for ElevenOneEleven, a mixed-use development with 344 apartments and ground-floor retail in Culver City, California, the firm announced Oct. 20. Bank OZK provided the five-year, floating-rate loan for the project, which is being developed by Lincoln Property Company and McCourt Partners.

Senior Managing Director Lou Friedel and Managing Director Keith Rosso of Berkadia Los Angeles arranged the financing on behalf of the development partners. Construction is set to begin in the next several months.

ElevenOneEleven Project Details

ElevenOneEleven will be located at 11111 Jefferson Blvd. on a 3.43-acre site. The development will rise six stories and include 344 apartments, 52 of which will be affordable units. The project also includes approximately 2,000 square feet of ground-floor retail, structured parking, a ground-floor public plaza along Jefferson Boulevard and thousands of square feet of open outdoor space. Project-entitlement materials describe roughly 17,500 square feet of publicly accessible open space.

Residences will feature quartz countertops, stainless steel appliances, luxury vinyl plank flooring, walk-in closets, private balconies and smart-home technology. Community amenities will include a resort-style pool courtyard, a second-floor outdoor amenity deck, a resident clubroom, a fitness center, a coworking lounge, an outdoor kitchen and barbecue area, and a pet wash station.

The 52 affordable apartments represent about 15.1% of the total unit count. The loan equates to roughly $386,000 per apartment, before accounting for retail, parking, open space, land value or other development costs. Residential density is approximately 100 units per acre.

Berkadia Financing Team Comments on Culver City

"Securing nearly $133 million in construction financing in today's environment speaks to the strength of the sponsorship and the fundamentals behind this project," Friedel said. "Los Angeles County continues to add new apartment supply at a relatively measured pace, while demand is projected to outpace deliveries. Culver City is particularly well positioned, with a deep employment base, strong connectivity and immediate access to the Westside."

The site sits at Jefferson and Sepulveda boulevards near Interstate 405, providing connectivity to employment hubs throughout Culver City and the Westside, including Playa Vista and Los Angeles International Airport. Major employers in the surrounding area include Sony Pictures Entertainment, Apple, Amazon Studios, Google and Meta. The property is also near Westfield Culver City and a variety of retail and dining destinations.

Los Angeles Multifamily Market Context

Los Angeles County's apartment inventory grew 3.8% over the past five years, according to Berkadia. The firm's Mid-Year 2026 Los Angeles Multifamily Market Report projects net absorption of approximately 14,900 units over the next year, compared with roughly 11,900 new deliveries.

Market data for the second quarter of 2026 shows Los Angeles multifamily vacancy at 4.52% and effective rent at $2,887, up 0.8% year over year. Los Angeles recorded approximately 9,105 trailing-12-month completions in the quarter, with vacancy remaining below 5%. Another market survey put the average multifamily capitalization rate at 5.37%, reporting that cap rates had risen for six consecutive quarters and that pricing per unit remained 13.9% below its 2022 peak.

Northmarq reported roughly 3,200 units of net absorption against approximately 3,000 deliveries in the first half of 2026, while Greater Los Angeles cap rates rose about 30 basis points year to date to 5.9%. In the top tier of the market, Los Angeles Class A asking rents rose 0.4% quarter over quarter to $3.66 per square foot in the second quarter, while top-tier vacancy reached 6.0%.

Financing Structure and Outlook

The deal is a ground-up development financed with a floating-rate loan, leaving the borrower exposed to future benchmark-rate movements. Bank OZK's five-year loan reflects lender support for a sizable, institutionally sponsored multifamily project at a time when new supply is rising and cap rates have moved higher.

The combination of a Westside location, employment access and a relatively limited countywide inventory increase underpins the sponsors' case for development. Lease-up will take place in a market where Class A vacancy is higher than the overall market rate.

Sources

• Berkadia: ElevenOneEleven, Culver City, CA | Financed by Berkadia 2026