Marcus & Millichap Capital Provides $85M Construction Loan to Westland Development Group for Beverly Hills Mixed-Use Project

Why It Matters

The financing underscores strong investor appetite for high‑density, transit‑adjacent housing in premium markets, while the affordable‑unit component helps meet California’s housing mandates. It signals that developers can leverage new density‑bonus policies to deliver larger, mixed‑use projects in traditionally low‑rise zones.

Key Takeaways

• $85M loan covers 65% of $130M project cost.
• 140 units include 22 low- and moderate‑income apartments.
• Six‑story building adds 13,000 sq ft retail space.
• Subterranean garage provides 177 parking spots for residents.
• Will become Beverly Hills’ largest residential complex ever built.

Pulse Analysis

Beverly Hills, long known for its single‑family estates, is witnessing a shift toward higher‑density, mixed‑use development as land values and housing demand soar. The $85 million loan secured by Marcus & Millichap Capital reflects a broader trend where institutional lenders are willing to fund projects that combine premium residential units with retail, especially when located near transit hubs like the new Wilshire/La Cienega subway station. By financing 65% of the estimated $130 million construction cost, the lender signals confidence in the city’s ability to attract affluent renters while delivering a stable cash flow from commercial leases.

The project leverages California’s AB 1287 density‑bonus law, which rewards developers for integrating affordable housing by allowing additional floor area. Westland’s inclusion of 22 very low‑ and moderate‑income units unlocks a larger building envelope, turning a previously stalled hotel proposal into a 140‑unit residential tower. This approach not only satisfies state housing obligations but also enhances the financial viability of the development, as the extra units generate higher rental revenue without sacrificing profitability.

For investors, the development offers a compelling risk‑adjusted return profile. The subterranean 177‑spot garage and 13,000 sq ft of ground‑floor retail create ancillary income streams that diversify cash flow beyond residential rents. Proximity to the new subway station positions the project as transit‑oriented, likely attracting tenants who value walkability and reduced car dependence. As Beverly Hills continues to relax zoning restrictions, similar high‑rise, mixed‑use projects may emerge, reshaping the city’s skyline and setting a precedent for luxury markets nationwide.

Deal Summary

Marcus & Millichap Capital has arranged an $85 million construction loan for Westland Development Group's mixed-use project at 55 N. La Cienega Blvd in Beverly Hills. The four-year loan, covering 65% of the project's cost, will fund a six-story building with 140 residential units, retail space, and underground parking. The financing reflects lender confidence in the market and supports the city's affordable housing goals.