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 Secures $28.5M Construction Loan for 104-Unit Conversion in Downtown Santa Monica
JLL Capital Markets, on behalf of Vernon Group, has secured a $28.5 million construction loan to convert an existing building at 201 Town Center East into The Lofts, a 104-unit Class A multifamily property in downtown Santa Monica, Calif. The project is part of Phase I of the Santa Maria Town Center redevelopment, a master-planned expansion initiated by the City of Santa Monica to revitalize the downtown core. Construction is scheduled to be completed in June 2027.
What the financing covers and the project basics
The construction financing will fund the conversion and upgrades needed to transform the existing structure into loft-style apartments. The Lofts will offer 104 units ranging in size from 600 to 1,200 square feet. The project will reconfigure the current building into a courtyard format and will use double-loaded corridors for apartment access. As a Class A development, the property will target higher-end finishes and amenities appropriate for downtown living.
Location and role in the broader redevelopment
Located in the heart of the Santa Maria Town Center at 201 Town Center East, The Lofts sits within the City-led master plan aimed at bringing new housing, retail life and urban energy back to the downtown core. The Santa Maria Town Center redevelopment is a phased effort; The Lofts is a component of Phase I, which focuses on creating new residential product and activating pedestrian spaces.
Teams behind the deal
The borrower is Vernon Group, a Santa Barbara-based developer. The JLL team that represented Vernon Group in arranging the construction financing included Matt Stewart, Alex Olson, Ace Sudah, Kyle White and Jacob Michael. The JLL team secured the $28.5 million construction loan to move the conversion forward; specific lender details were not disclosed.
Timeline and next steps
With financing in place, work will continue on design and permitting where needed, followed by the construction and conversion phases. The developer has targeted June 2027 for completion. The conversion will reuse the existing building shell and reorient interior spaces to create the courtyard setting and corridors that improve light, access and flow for residents.
Why this matters to Santa Monica
The Lofts adds Class A loft-style housing to the downtown market at a time when the city is pushing to revive the town center. The project supports the city’s plan to breathe new life into the retail and pedestrian corridors, while adding housing stock near transit, jobs and services. The conversion approach can be faster than full new construction and can help reactivate underused buildings more quickly.
Industry context
Developers, lenders and city planners often use conferences and events to discuss trends in multifamily, seniors housing, student housing and industrial development. Industry forums across regions—covering multifamily markets in Texas, Phoenix and Las Vegas, seniors housing in the Southeast, and specialized sessions for student and medical office real estate—offer places for dealmakers to network and share best practices. These gatherings highlight changing demand, design trends and financing strategies relevant to projects like The Lofts.
FAQ
What project received financing?
The Lofts, a 104-unit Class A multifamily conversion at 201 Town Center East in downtown Santa Monica.
How much was the construction loan?
$28.5 million in construction financing arranged by JLL Capital Markets on behalf of Vernon Group.
Who is the borrower?
Vernon Group, a developer based in Santa Barbara, California.
What are the unit sizes?
Apartment sizes will range from 600 to 1,200 square feet.
When will construction be complete?
Construction is slated for completion in June 2027.
What design changes are planned?
The existing building will be converted to a courtyard format with double-loaded corridors for apartment access.
Is this part of a larger plan?
Yes. The Lofts is part of Phase I of the City-initiated Santa Maria Town Center redevelopment, a master-planned expansion to revitalize the downtown core.
Who at JLL handled the financing?
The JLL team representing the borrower included Matt Stewart, Alex Olson, Ace Sudah, Kyle White and Jacob Michael.
Key Project Features
| Feature | Details |
|---|---|
| Project name | The Lofts |
| Location | 201 Town Center East, Downtown Santa Monica, Calif. |
| Borrower / Developer | Vernon Group (Santa Barbara, Calif.) |
| Financing arranged by | JLL Capital Markets |
| Loan amount | $28.5 million |
| Units | 104 loft-style apartments |
| Unit sizes | 600 – 1,200 sq ft |
| Design | Conversion to courtyard format; double-loaded corridors |
| Classification | Class A multifamily |
| Completion target | June 2027 |
| JLL team | Matt Stewart, Alex Olson, Ace Sudah, Kyle White, Jacob Michael |
| Project phase | Phase I of Santa Maria Town Center redevelopment |
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
