Visionary Developments Lands Project Financing

Visionary Developments, a real estate developer based in Echo Park, recently closed on $46.6 million in financing for its first affordable multifamily development, known as The Court Residences.

The construction financing is a mix of senior debt from J.P. Morgan’s Community Development Banking division and mezzanine financing from BlueHub Capital and the California Municipal Finance Authority.

The 189-unit Echo Park project, which had its groundbreaking ceremony earlier this month, will be designated workforce housing for those earning 80% of the county’s area median income.

At about $247,000 per unit, the development’s cost is competitive in Los Angeles’ affordable housing landscape. Terry Harris, founder of Visionary Developments, attributes the low cost to streamlined processes and density benefits through the city’s ED-1 program and the sole use of private funding to avoid prevailing wage requirements.

Harris emphasized choosing a project location that would maximize its impact.

“Affordable housing should be in areas where rent will be below the market rents of that neighborhood, (not) in and around your class C or D neighborhoods where the market rents are equal to what this new affordable housing building would be,” he said.

Harris said he picked Echo Park because it’s a growing market, walkable and has proximity to downtown and public transit.

“Our building will be 30% to 40% below what the market rate rent is in Echo Park,” Harris said. “I think that wherever a development goes, it should benefit the community and the residents, especially with this being workforce housing.”

Visionary Developments has 940 units under development in L.A. with this project being the firm’s first affordable project. Harris is also looking at East Hollywood and Silver Lake.

The Court Residences “is not going to feel like your typical affordable housing,” Harris said, noting an “innovative” design and several community-oriented amenities.

Working on this development alongside his brother – Tobias Harris, a starting power forward for the Detroit Pistons – Terry Harris hopes to set an example on alternative careers.

“In terms of impact, it’s showing that we can lead these projects as well. For the next generation of athletes or young, minority kids, athletics isn’t the only avenue they can go into to be successful, but there’s opportunity in real estate development,” said Terry Harris, who used to play in the NBA G-League.