JPI and Chuo-Nittochi Group Plan 257-Unit Normandie Apartments in Gardena for $125 Million

JPI and Chuo-Nittochi Group have announced a joint venture to develop Normandie Apartments, a 257-unit, five-story multifamily community at 16911 S. Normandie Avenue in Gardena, California. The partners closed on the 2.14-acre site in August 2026, with total development costs estimated at approximately $125 million and a target completion date of March 2029.

The project represents the first collaboration between JPI, Sumitomo Forestry's U.S. multifamily platform, and Chuo-Nittochi Group. The venture is being executed through Chuo Nittochi I LLC, a U.S. affiliate of Chuo-Nittochi Group.

Project Details and Construction

Normandie Apartments will rise five stories on a site at the intersection of Normandie Avenue and 169th Street in Gardena. The building's design calls for reinforced concrete construction on the basement and first floor, with wood-frame construction on the second through fifth floors — a hybrid structural approach consistent with Sumitomo Forestry's emphasis on timber-inclusive building methods.

The development will encompass approximately 189,291 square feet of net rentable area across 257 units, yielding an average unit size of roughly 740 square feet. The unit mix includes studios, one-bedroom, and two-bedroom apartments. Seven of the 257 units will be reserved for moderate-income renters, with the remainder offered at market rate.

The project is targeting single professionals and couples employed at nearby South Bay employers. Amenities are planned to include a resort-style pool and spa with cabanas, a rooftop deck, fitness center, resident clubhouse, game room with karaoke and billiards, library, co-working space, and an open-air kitchen and BBQ area.

The site previously housed a mid-century food and beverage warehouse. Earlier entitlements had contemplated a larger 333-home plan that included 75 townhomes, but the development moving forward focuses solely on the 257-unit apartment component.

Capital Stack and Timeline

At a total development cost of approximately $125 million across 257 units, the project implies a cost of roughly $486,000 per unit and approximately $660 per rentable square foot — metrics consistent with current replacement-cost economics for mid-rise, amenitized Class A product in infill Los Angeles submarkets.

JPI closed on the land in August 2026 and expects to break ground in September 2026. Completion is scheduled for March 2029.

South Bay Market Context

Gardena sits within the South Bay submarket of Los Angeles County, which JPI has characterized as job-rich and severely supply-constrained. The city offers a lower price point relative to coastal South Bay communities such as Redondo Beach and Hermosa Beach, while maintaining proximity to employment nodes in Torrance, the Harbor-area logistics corridor, and the regional aerospace and manufacturing sector.

Average apartment rents in Gardena run approximately $2,020 per month, with one-bedroom units averaging near $1,977 and two-bedroom units around $2,504. Metro-wide, Los Angeles multifamily asking rents have averaged roughly $2,292 per unit per month in recent periods.

Los Angeles County continues to face a significant housing undersupply, and rising cap rates across the metro have created conditions that institutional developers are weighing as they underwrite new ground-up projects. Normandie Apartments positions institutional capital in an infill location that trades some coastal rent premium for improved yield potential while still drawing on strong employment-driven rental demand in the South Bay.

About the Partners

JPI is the U.S. multifamily development affiliate of Sumitomo Forestry Co., Ltd., headquartered in Tokyo's Chiyoda Ward. Chuo-Nittochi Group is also headquartered in Chiyoda Ward, Tokyo. The two firms are collaborating on a U.S. multifamily project for the first time through this Gardena development.

Sources

• Chuo-Nittochi Group — Project Announcement (September 8, 2026)