Comstock Realty Lands $50M Loan for 850-Unit Modelo Mixed-Use in Commerce

Key Points:

• $50 million loan secured to move forward with site remediation
• 850 homes plus 160,000 square feet of commercial space planned
• Townhome construction set to begin

The Financing

Comstock Realty Partners has secured a $50 million loan to push forward its long-planned Modelo mixed-use development in Commerce. The financing will fund environmental remediation and relocation work tied to Veterans Memorial Park, clearing a major hurdle before full-scale construction. The developer is also preparing to begin vertical construction on the townhome portion of the project.

The Development Plan

Approved in 2022, Modelo is one of the largest planned mixed-use projects in Southeast Los Angeles County. The development calls for 740 apartments, 45 condominiums, and 65 townhomes, alongside 160,000 square feet of commercial space. Plans also include more than 2,200 parking spaces and a 65,000 square foot community center. Updated renderings suggest a shift in massing strategy, as earlier plans for a 15-story residential tower no longer appear.

Why It Matters

Commerce has traditionally been industrial and retail-focused, making Modelo a transformative residential infill play near the Rio Hondo channel. Securing financing after six years of planning signals lender confidence in the project’s entitlement structure and phased execution strategy. For landlords and brokers, the combination of rental, for-sale housing, and retail diversifies revenue streams in a market still grappling with supply constraints.

The Takeaway

With capital in place and townhome construction set to begin, Modelo is transitioning from the entitlement story to the execution phase. In today’s tighter lending environment, large-scale mixed-use projects only move forward when sponsors control approvals and phasing. Comstock appears ready to test that thesis in Commerce.