JPI and Chuo-Nittochi Group Break Ground on 257-Unit Multifamily Development in Gardena Near Los Angeles

JPI and Chuo-Nittochi Group have begun construction on Normandie Apartments, a 257-unit multifamily rental complex in Gardena, California, marking the first collaboration between the two companies and the ninth joint development between the broader Sumitomo Forestry Group and Chuo-Nittochi in the United States.

The project, located at 16911 S. Normandie Avenue at the intersection of Normandie Avenue and West 169th Street in the South Bay submarket of Los Angeles County, carries an estimated total development cost of approximately $125 million. Construction began in September 2026, with completion targeted for March 2029.

Project Details and Structure

Normandie Apartments will rise five stories on a 2.14-acre site and encompass approximately 189,291 square feet of total floor area. The building employs a hybrid structural system: reinforced concrete for the basement and first floor, and wood two-by-four framing for the second through fifth floors. At 257 units and an estimated all-in cost of roughly $125 million, the project implies a development cost of approximately $486,000 per unit and $660 per square foot — figures consistent with high-cost infill multifamily construction in the Los Angeles market.

The unit mix includes studios, one-bedroom, and two-bedroom layouts targeting singles and couples employed at nearby companies. Seven of the 257 units will be reserved for moderate-income renters. Shared amenities will include a club room, bar kitchen, karaoke room, pool, and fitness gym. Interiors will feature extensive wood finishes intended to create what the developers describe as a calm and warm atmosphere.

The developer is a special purpose company jointly owned by JPI and Chuo-Nittochi I LLC, the U.S. subsidiary of Chuo-Nittochi. Sumitomo Forestry Asset Management Co., Ltd. is responsible for coordinating the project. JPI closed on the 2.14-acre site on August 20, 2026.

Partnership Background and Corporate Context

JPI, headquartered in Dallas, Texas, was established in 1989 and became a consolidated subsidiary of Sumitomo Forestry — with the Japanese forestry and real estate conglomerate acquiring a 90% stake — in November 2023. The company employs 505 people as of June 2026 and focuses on land acquisition, development management, construction management, and asset management for multifamily housing. Payton Mayes serves as CEO of JPI.

Chuo-Nittochi, headquartered in Tokyo, is a comprehensive real estate group operating across urban development, leasing, residential development, overseas investment, real estate solutions, asset management, construction, and golf course management. Kiyoshi Miyake serves as President and CEO. The company established a local office in San Francisco in October 2024 as part of its effort to expand its U.S. presence.

Sumitomo Forestry Asset Management Co., Ltd., also headquartered in Tokyo, was established in November 2020 and provides joint venture coordination, fund formation, advisory, consulting, and brokerage services related to real estate and forest assets in Japan and overseas.

The two parent companies have previously collaborated on multifamily projects in Washington, D.C., Denver, Seattle, Boston, and Atlanta, as well as a logistics center in Charlotte. Normandie Apartments represents the first time JPI specifically — rather than another Sumitomo Forestry subsidiary — has partnered directly with Chuo-Nittochi.

South Bay Market Conditions

Gardena sits within the South Bay submarket of Los Angeles County, offering direct freeway access via Interstate 405, Interstate 110, and California State Route 91. The site is approximately 20 minutes by car from downtown Los Angeles and 10 to 20 minutes from major employment centers including El Segundo, home to numerous aerospace-related companies; Torrance, where several Japanese and other manufacturing firms operate; and Long Beach, which hosts companies in port logistics, education, and healthcare.

Both JPI and Sumitomo Forestry characterize South Bay as one of the most undersupplied multifamily markets in Los Angeles County, citing strong housing demand against a backdrop of limited new supply over many years. The Normandie Apartments site previously housed a shuttered industrial building, reflecting a broader pattern of older industrial properties being converted or redeveloped for residential use in Gardena.

Sustainability and Decarbonization Goals

The use of wood framing for the upper four floors is central to both the project's cost strategy and its environmental positioning. Wood two-by-four construction using standard dimensional lumber is generally less expensive than reinforced concrete or steel-frame alternatives, according to the developers. The companies also note that wood construction typically generates lower embodied carbon emissions during construction than steel or concrete, and that wood sequesters carbon absorbed during tree growth for the life of the structure.

Sumitomo Forestry has framed the project within its long-term Mission TREEING 2030 strategy, which aims to increase CO₂ absorption through forestry management and expand the use of wooden buildings that store carbon over extended periods. Chuo-Nittochi has similarly emphasized decarbonization commitments, including the use of renewable energy and environmentally conscious real estate development, as priorities for its overseas expansion.

Outlook

With construction underway and a March 2029 completion target, Normandie Apartments is positioned as a Class A rental community in a submarket where new multifamily supply has been constrained for years. For JPI and Chuo-Nittochi Group, the deal deepens a cross-border development relationship that now spans nine U.S. projects across multiple asset classes and markets.

Sources

Chuo-Nittochi Group / Sumitomo Forestry Co., Ltd. — Joint Press Release, September 8, 2026