Forest City South Park Two has received a $29-million letter of credit from the National Bank of Canada to finance construction of the 270-unit Skyline Apartments in downtown Los Angeles.
The complex will be adjacent to the Skyline Condominiums, the pioneer housing development in the emerging South Park area. Both projects are bordered by 9th Street, Olympic Boulevard, Hope and Flower streets.
The National Bank of Canada, with $28 billion (Canadian) in assets, has guaranteed tax-exempt mortgage bonds by assuring the repayment of the bonds' principal and interest. This type of financing enables developers to borrow money at a much lower tax-exempt rate of interest.