1506 Van Ness Ave, August 13, 2025
News Summary
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.
Fresno Mayor Proposes 36‑Month Market‑Rate Bridge Loans to Restart Long‑Vacant Downtown Site
Top line
City leaders are moving to unlock financing for a stalled downtown apartment project at 1506 Van Ness Ave by offering a short‑term, market‑rate bridge loan lasting up to 36 months. The proposal targets a 54‑unit market‑rate complex planned by Lance Kashian and Co., which has operated on the project as Uptown LLC. City officials also warn that the land could be reclaimed by the city if the developer fails to make meaningful progress.
What the plan would fund
Approved building plans call for a 54‑unit apartment building that includes a rooftop pool and other upscale features aimed at downtown renters. The mayor has identified a short‑term gap in construction financing as the key obstacle to getting shovels in the ground. To bridge that gap, the mayor will send a proposal to the city council to authorize a 36‑month market‑rate bridge loan tied to state grant funds earmarked to accelerate housing in the downtown core.
Loan details and funding source
The proposed loans would last no more than 36 months and carry typical market interest rates. Funding would come from state infrastructure grants the city has received, including a portion of a previously announced $250 million infrastructure allocation, of which the city has already received $150 million. City officials plan to issue a notice of funding opportunity that would allow developers to apply for gap financing for construction loans with the same maximum 36‑month term.
Who would benefit
The immediate beneficiary would be the Uptown LLC project at 1506 Van Ness Ave. The mayor also signaled intent to make this type of bridge financing available to up to four other downtown projects, though he did not name those sites or indicate the size of additional loans. The goal is to move several stalled or slow‑moving projects into construction quickly by covering short‑term cash shortfalls.
Project history and current status
The site was long vacant after previously serving as a gas station. A local business owner demolished the old station and removed an underground tank years ago with plans initially aimed at building a parking structure. In 2015 the city gave two parcels for housing under a development agreement that later lapsed. After the agreement expired, the site’s developer partner became Lance Kashian and Co., doing business as Uptown LLC. With little construction activity, the city issued a notice of default in late 2024 and later granted extensions while Uptown LLC satisfied several city demands.
Risks if work stalls
City leaders say they remain optimistic the project will move forward but have made clear that the property could be taken back if the developer fails to deliver. The mayor framed the intervention as both a tool to spur private investment and a safeguard to ensure downtown land does not remain idle indefinitely.
Context: why city money, why now
Officials say downtown construction costs have risen sharply, making returns on market‑rate housing less certain. In particular, higher labor and material costs downtown make many projects hard to pencil out, and projected rents do not always cover the added expense. City leaders argue short‑term bridge loans can close temporary financing gaps and attract private capital to move projects to completion.
Examples and lending landscape
While this proposal is local, it follows broader trends in specialized bridge lending for housing and senior living that have closed large transactions in recent years. Municipal gap financing using state grants is being used elsewhere to accelerate projects that otherwise would struggle to secure permanent construction loans.
Comments and responses
The developer’s spokesperson declined to comment for this story. The local business owner who demolished the old gas station did not respond to requests for comment. City officials will present the bridge loan plan to the city council for approval before any funds are committed.
Next steps and timeline
The mayor will send the formal loan proposal to the council and the administration will publish a notice of funding opportunity for downtown projects. If approved, loans would be offered for periods up to 36 months at market interest rates; the city hopes to quickly move several downtown developments into construction. If Uptown LLC fails to meet required milestones, city officials retain authority to reclaim the property.
FAQ
Q: What project is this loan meant to support?
A: The primary target is a 54‑unit market‑rate apartment project at 1506 Van Ness Ave being developed by Lance Kashian and Co., doing business as Uptown LLC.
Q: How long would the city loans last and what rates apply?
A: Loans would be market‑rate bridge loans with terms of up to 36 months. The city intends to charge typical market interest.
Q: Where would the money come from?
A: Funds would come from state infrastructure grants the city has received, including part of a larger $250 million allocation of which $150 million has been delivered so far.
Q: Could the city take the land back?
A: Yes. City officials have said they will consider reclaiming the property if the developer does not progress after receiving opportunities and extensions.
Q: Will other projects get similar help?
A: The mayor indicated an intent to offer this type of short‑term gap financing to up to four other downtown projects, though details and amounts were not yet provided.
Key project features
| Feature | Details |
|---|---|
| Site address | 1506 Van Ness Ave |
| Developer | Lance Kashian and Co. (doing business as Uptown LLC) |
| Planned units | 54 market‑rate apartments |
| Notable amenities | Rooftop pool and upscale finishes planned |
| Loan type proposed | Market‑rate bridge loan, up to 36 months |
| Funding source | State infrastructure grants (portion of a larger allocation already partly received) |
| City safeguard | City may reclaim land if development stalls |
Deeper Dive: News & Info About This Topic
Additional Resources
- GV Wire: Will downtown Fresno lot finally become housing?
- Wikipedia: Downtown Fresno
- ConnectCRE: MonticelloAM closes $8.7M bridge loan on Fresno assisted living
- Google Search: assisted living financing Fresno
- Shopping Center Business: Gantry arranges $26M refinancing for retail center in Southern California
- Google Scholar: commercial real estate refinancing Southern California
- ABC30: Bitwise Industries downtown Fresno employees furloughed (WARN Act)
- Encyclopedia Britannica: WARN Act
- San Francisco Chronicle: High-speed rail private financing discussion
- Google News: California high-speed rail private financing
