Santa Monica, Calif., August 20, 2025
News Summary
JLL Capital Markets arranged a $28.5 million construction loan on behalf of Vernon Group to convert the existing building at 201 Town Center East into The Lofts, a 104-unit Class A multifamily project in downtown Santa Monica. Units will range from 600 to 1,200 sq ft and be organized around a central courtyard with double-loaded corridors. The financing supports Phase I of the Santa Maria Town Center master-planned redevelopment, intended to add housing, activate the streetfront, and strengthen walkable urban living in the downtown core, with construction targeted for completion in June 2027.
JLL Capital Markets Secures $28.5M Construction Loan for The Lofts, a 104-Unit Conversion in Downtown Santa Monica
SANTA MONICA, CALIF. — JLL Capital Markets, acting on behalf of Vernon Group, has secured a $28.5 million construction loan for The Lofts, a Class A multifamily conversion slated for downtown Santa Monica. The financing supports Phase I of the Santa Maria Town Center master-planned expansion, a City of Santa Monica-initiated redevelopment effort aimed at revitalizing the downtown core.
Top-line project details
The Lofts will convert the existing structure at 201 Town Center East into 104 loft-style apartments. Unit sizes will range from 600 to 1,200 square feet, and the remodeled building will adopt a courtyard format with double-loaded corridors to maximize apartment layouts and circulation. Construction is scheduled for completion in June 2027.
Financing and representation
The construction financing was arranged by JLL Capital Markets on behalf of Vernon Group, which is based in Santa Barbara, Calif. The JLL team representing the borrower included Matt Stewart, Alex Olson, Ace Sudah, Kyle White and Jacob Michael.
Where the project sits in the larger plan
The Lofts is a component of Phase I in the Santa Maria Town Center redevelopment. The broader redevelopment is a master-planned expansion initiated by the City of Santa Monica to strengthen and revitalize the downtown core. Phase I includes adaptive reuse and new development intended to add housing, activate the streetfront, and support walkable urban living in the heart of the city.
Design and building conversion specifics
The project converts an existing building into a low- to mid-rise multifamily property organized around a central courtyard. The conversion emphasizes loft-style living with open floor plans and larger unit footprints for a Class A rent and amenity profile. The use of double-loaded corridors indicates apartments will line both sides of interior hallways, improving unit efficiency and circulation while the courtyard provides a shared outdoor amenity and natural light for interior units.
Timeline and delivery
With financing in place, construction will continue toward a projected completion date of June 2027. The schedule anticipates substantial construction and conversion work to transform the existing structure into modern residential units designed for downtown Santa Monica demand.
Market context
The Lofts adds to downtown Santa Monica’s pipeline of new and repurposed housing. The project aligns with municipal goals to inject housing into the downtown core through public-private planning and master-planned redevelopment. The 104-unit count and unit size range target a mix of residents seeking loft-style apartment living close to transit, retail, and employment nodes in Santa Monica.
Industry events and broader activity
Industry gatherings this year provide forums for developers, investors and lenders to track trends that influence projects like The Lofts. Events covering industrial, multifamily, seniors housing, student housing design, medical office and retail markets are scheduled across several regions. These events gather decision-makers to share insights on development, financing, operations and market outlooks that help shape local projects and financing strategies.
Why this matters
The secured construction financing moves a significant downtown conversion forward and supports local planning goals. The project demonstrates continued investor and lender interest in adaptive reuse and mid-market multifamily product in high-demand coastal cities. For Santa Monica, the conversion supports the City’s effort to invigorate the downtown core with new housing and street-level activity.
Frequently Asked Questions
What is The Lofts project?
The Lofts is a Class A multifamily conversion at 201 Town Center East in downtown Santa Monica that will deliver 104 loft-style apartments as part of Phase I of the Santa Maria Town Center redevelopment.
How much financing was secured and who arranged it?
JLL Capital Markets arranged a $28.5 million construction loan on behalf of Vernon Group to fund the conversion work.
When is construction expected to be finished?
Construction is slated for completion in June 2027.
What types and sizes of units will be offered?
The project will include 104 loft-style apartments with unit sizes ranging from 600 to 1,200 square feet.
Who is the developer or owner behind the project?
The borrower for the financing is Vernon Group, a development firm based in Santa Barbara, Calif.
How does The Lofts fit into the Santa Maria Town Center plan?
The Lofts is part of Phase I of the Santa Maria Town Center master-planned redevelopment, an initiative launched by the City of Santa Monica to revitalize the downtown core through mixed-use development and housing.
Key Project Features
| Feature | Detail |
|---|---|
| Project name | The Lofts |
| Location | 201 Town Center East, Downtown Santa Monica, Calif. |
| Financing | $28.5 million construction loan |
| Borrower/Developer | Vernon Group (Santa Barbara, Calif.) |
| Arranging firm | JLL Capital Markets (team: Matt Stewart; Alex Olson; Ace Sudah; Kyle White; Jacob Michael) |
| Unit count | 104 loft-style apartments |
| Unit sizes | 600 – 1,200 sq ft |
| Design | Courtyard format with double-loaded corridors |
| Project role | Phase I of Santa Maria Town Center redevelopment |
| City involvement | City of Santa Monica-initiated master-planned expansion |
| Estimated completion | June 2027 |
Deeper Dive: News & Info About This Topic
Additional Resources
- Los Angeles Times — Search: The Lofts Santa Monica
- Wikipedia: Santa Monica, California
- City of Santa Monica — Search: Santa Maria Town Center
- Google Search: Santa Maria Town Center Santa Monica
- JLL — Search: The Lofts Santa Monica
- Google Scholar: adaptive reuse multifamily conversion
- Commercial Observer — Search: The Lofts Santa Monica
- Encyclopedia Britannica: adaptive reuse
- Google News: The Lofts Santa Monica
- Google Search: The Lofts 201 Town Center East Santa Monica
Author: Construction FL News
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