Proposed 54-unit market-rate apartments at 1506 Van Ness Ave, planned with a rooftop pool to serve downtown residents.
1506 Van Ness Ave, August 13, 2025
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.
The city mayor has proposed a 36‑month market‑rate bridge loan to help a developer restart work on a long‑vacant downtown lot that is planned for a 54‑unit market‑rate apartment building at 1506 Van Ness Ave. The plan would let the city provide short‑term gap financing to get construction moving, use state grant money already allocated for downtown housing, and allow the city to retake the land if the developer fails to complete agreed steps.
The development team led by Lance Kashian and Co., doing business as Uptown LLC, received city approval for building plans last month. The proposal calls for a market‑rate apartment complex with features including a rooftop pool. The mayor described the project as a strong addition to downtown and said the main hurdle is a shortfall in construction financing.
The proposed bridge loan would be offered at typical market interest rates and limited to no more than 36 months. The mayor plans to send the loan plan to the city council for approval and wants the same type of short‑term financing available to up to four other downtown projects that are also facing financing gaps. He did not name those other projects or specify loan sizes for them.
The mayor explained that high construction costs in downtown make many housing projects difficult to finance. Even when a developer wins city approvals, the combination of rising prices and rents that do not always match those costs can create a temporary gap between construction loans and longer‑term financing. This Uptown LLC project is being treated as such a gap: the city says it is a short‑term need to get building started.
The lot at 1506 Van Ness Ave had been vacant for years. It was once a gas station; the underground tank was removed after demolition work by a local business owner who had originally hoped to use the site for a parking structure. City records show the property was given to that owner under a development agreement intended to spur housing, but that agreement expired in 2019. The owner then brought in Lance Kashian and Co. as the developer operating under the Uptown LLC name.
In October of last year, the city sent Uptown LLC a notice of default because little progress had been made. The city normally allows six months for developers to address such notices, but because construction had not begun the city granted an extension beyond the usual timeframe. Uptown LLC satisfied four of the city’s requirements, and the mayor said the project is now at a point where short‑term financing could push it forward. He also warned that the city will reclaim the property if the developer fails to move the project ahead.
The proposed bridge loans would be funded with state grant money set aside to accelerate housing in downtown. That pool includes cash from a larger infrastructure grant the city was promised in 2023; the city has already received a portion of that award. The city plans to issue a formal notice of funding opportunity so developers can apply for gap financing that would cover construction shortfalls for up to 36 months.
If the city council approves the mayor’s plan, eligible developers could apply for market‑rate bridge loans to cover the difference between initial construction costs and the longer‑term financing they expect to secure. The loans would carry standard market interest and strict time limits. The city hopes the move will unlock several stalled downtown projects and lead to quicker building starts.
The developer associated with the Uptown project declined to comment when contacted. The city and mayor say they are optimistic the financing will spur progress, but they also say the city retains the right to take back the land if the developer does not meet agreed milestones.
Short‑term bridge loans are common tools to manage timing gaps in construction financing, especially in markets where costs outpace rental income. Examples of large bridge loans for housing and senior housing exist elsewhere in the region, demonstrating how such loans can be used to refinance or stabilize projects while permanent financing is arranged.
The mayor has proposed offering 36‑month market‑rate bridge loans to help developers finish permitting and start building downtown housing, beginning with a 54‑unit project at 1506 Van Ness Ave.
The project is led by Lance Kashian and Co., operating as Uptown LLC.
Plans call for a 54‑unit market‑rate apartment building that includes a rooftop pool.
Funds would come from state grants set aside to accelerate downtown housing, including money from a larger infrastructure grant the city has already received in part.
Loans would be market‑rate and limited to no more than 36 months to bridge the gap until permanent financing is in place.
The city has said it will retake the property if the developer fails to meet required steps and deadlines.
The mayor said he hopes to make similar bridge loans available to up to four other downtown projects, though details and loan sizes have not been named.
| Feature | Detail |
|---|---|
| Project address | 1506 Van Ness Ave |
| Developer | Lance Kashian and Co. (doing business as Uptown LLC) |
| Units | 54 market‑rate apartments |
| Special feature | Rooftop pool |
| Proposed gap financing | Market‑rate bridge loans up to 36 months |
| Funding source | State grants and a city infrastructure grant fund |
| City safeguard | City may reclaim property if developer stalls |
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