Culver City breaks ground on $200 million apartment complex

Earth movers are grading the site at the intersection of Jefferson and Sepulveda boulevards in Culver City, clearing the way for a new housing project. The development, named ElevenOneEleven, is a $200 million complex that will replace a U.S. Post Office, a Coco’s restaurant, and a Valvoline auto repair shop.

The project sits on a 3.5-acre lot and will feature 344 apartments above street-level retail spaces. Two public parks are included in the design. Construction has already begun on the site.

Lincoln Property Co. of Dallas and McCourt Partners of New York are developing the complex. Lincoln previously worked on the Playa Vista community, which was built on the former headquarters of Hughes Aircraft Co. Jordan Lang, president of McCourt Partners, described Culver City as a desirable location for residents.

Lang noted that the city has shifted from its entertainment roots to a hub for creative businesses like HBO, Amazon, and Apple. He said the market in Culver City has room for growth. The complex is expected to open in late 2028.

Once complete, the development will house up to 500 people. Fifty-two of the units will have subsidized affordable rents. The developers expect many residents to work in the technology and entertainment sectors.

Stephen Lindgren, who leads Lincoln’s Los Angeles office, said the city’s strong employment base makes it attractive to investors. He described Culver City as severely under-housed, which helped the developers secure funding. Last month, they obtained nearly $133 million in construction financing from an Arkansas bank.

Lang stated that institutional capital favors Culver City. This investment comes as apartment construction slows across Los Angeles County. Lenders, including pension funds and insurance companies, have become wary of the local market.

Investors are concerned that changing rules make profits difficult to predict. The years since the pandemic have highlighted how tangled regulations can be in Los Angeles. As a result, some investors are moving their money to other cities.

Developers also face rising construction costs and a shortage of skilled labor. Lang acknowledged that there are intense headwinds in the housing market. He observed that while many say housing is needed, actually providing it remains difficult.

Culver City Mayor Freddy Puza said in March that the city is working to meet a target set by the Southern California Assn. of Governments. The goal is to add 3,341 units to the city by 2029.