Proposed 54-unit market-rate apartments at 1506 Van Ness Ave, planned with a rooftop pool to serve downtown residents.
1506 Van Ness Ave, August 13, 2025
City leaders propose a 36-month market-rate bridge loan to help the developer begin construction of a planned 54-unit market-rate apartment building at 1506 Van Ness Ave, featuring a rooftop pool and upscale amenities. Funds would come from state housing and infrastructure grants to fill short-term financing gaps so permanent construction loans or equity can be secured. The plan would also allow similar loans for other downtown projects. City officials emphasize the municipality’s right to reclaim the site if the developer fails to meet required milestones or make meaningful progress.
City leaders moved to clear a major financing hurdle for a long-vacant downtown parcel by proposing a 36-month market-rate bridge loan to help the developer break ground on a planned 54-unit market-rate apartment complex at 1506 Van Ness Ave. The proposal also makes clear the city can reclaim the property if the developer fails to make meaningful progress.
Building plans for the project were approved recently for Lance Kashian and Co., doing business as Uptown LLC. The development calls for modern apartments with a rooftop pool and other upscale amenities aimed at downtown residents. City officials say the main obstacle is a short-term gap in construction financing caused by high downtown building costs and rents that often do not support those costs.
The mayor plans to send a proposal to the city council for a market-rate bridge loan that would last up to 36 months. The loan would carry standard market interest and would come from state grants dedicated to accelerating housing in the city core, including funds from a larger infrastructure grant promised in 2023. The city has received a portion of that grant money already and intends the bridge program to act as temporary gap financing so developers can secure permanent construction loans or equity later.
City officials want to make this type of short-term construction gap financing available to several other downtown projects; the initial plan would allow similar loans for up to four additional developments. Details about the size and recipients of those future loans have not been finalized. The city plans to issue a formal notice of funding opportunity to invite qualified developers to apply for the gap financing.
The site at Van Ness Avenue and Stanislaus Street has been empty for years. Before it sat vacant, the land hosted a gas station that was demolished and had underground tanks removed by a local business owner associated with Catalyst Communications. That owner had originally planned a parking structure and, under an earlier administration in 2015, received two parcels as part of a development agreement aimed at creating housing. That prior agreement expired in 2019. Afterwards, the property moved to the current developer, which has operated as Uptown LLC.
The city issued a notice of default to Uptown LLC in October 2024 after limited progress. That notice normally triggers a six-month timeline for corrective action, but the city granted an additional extension because there was no construction on site. Uptown LLC satisfied four specific demands from the city, and building plans were approved last month. Officials say they remain optimistic the project will move forward but have emphasized the city’s right to take back the property if development stalls again.
Developers have been struggling to make downtown housing projects work financially, city leaders note. Construction costs in downtown areas are especially high, and projected rents for new units often fall short of covering those costs and delivering returns for investors. The proposed bridge loans are intended to cover short-term gaps so projects can reach a stage where permanent financing or investor capital becomes available.
Short-term bridge lending has been used in recent regional deals, including large multi-property loans in the seniors housing sector. Those transactions show how bridge capital can refinance or stabilize projects until long-term financing is obtained. City leaders say the proposed downtown bridge program would function similarly but focus on getting downtown residential projects out of the planning phase and into construction.
The loan plan will be sent to the city council for approval. If approved, the city will publish a notice of funding opportunity and start evaluating applications. Officials aim to move quickly so several downtown properties can proceed with construction in the near term. If a project fails to advance despite funding and city oversight, the property may be returned to municipal control and reallocated for development under different terms.
The proposal supports a 54-unit market-rate apartment building that includes a rooftop pool, by providing a temporary construction bridge loan to help the developer begin work.
The approved developer for the site is Lance Kashian and Co., which has also operated under the business name Uptown LLC.
The mayor proposes market-rate loans that would last no more than 36 months and carry standard market interest rates, intended as short-term gap financing.
Funds would come from state grants aimed at accelerating downtown housing, including money from a multi-hundred-million-dollar infrastructure grant the city began receiving in 2023.
The city reserves the option to reclaim the land and pursue alternative development arrangements if required milestones are not met.
The mayor intends to make similar bridge financing available to up to four other downtown projects, with additional details to be set when the city issues a notice of funding opportunity.
| Feature | Detail |
|---|---|
| Project address | 1506 Van Ness Ave |
| Units planned | 54 market-rate apartments |
| Notable amenity | Rooftop pool |
| Developer | Lance Kashian and Co. (Uptown LLC) |
| Financing proposed | Up to 36-month market-rate bridge loan |
| Funding source | State grants for downtown housing, including funds from a 2023 infrastructure grant |
| City condition | City may reclaim property if development stalls |
| Recent city action | Notice of default issued in Oct 2024; developer satisfied four demands; building plans approved |
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