1506 Van Ness Ave, August 13, 2025
News Summary
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.
Fresno Mayor Proposes 36‑Month Market‑Rate Bridge Loans to Kick‑Start 54‑Unit Uptown LLC Project at 1506 Van Ness Ave; City Could Reclaim Land if Development Stalls
The city of Fresno is moving to close a shortfall in construction financing for a long‑vacant downtown parcel, proposing a time‑limited, market‑rate bridge loan to help a developer finish plans for a new apartment building at 1506 Van Ness Ave. The proposal includes a clear signal that the city may take back the property if work does not begin within the agreed timeframe.
What the plan covers
City leaders have approved building plans for a developer operating as Uptown LLC, led by Lance Kashian and Co., to build a 54‑unit market‑rate apartment complex on the site. The planned building includes amenity features such as a rooftop pool. With construction costs high and rents in downtown not always matching those costs, the mayor is pushing a short‑term financing tool to bridge gaps between construction needs and longer‑term loans.
Bridge loan details
The mayor plans to submit a proposal to the city council to approve a market‑rate bridge loan lasting up to 36 months for the Uptown LLC project. The same model is intended to be made available to as many as four additional downtown projects, with terms capped at 36 months and interest set at standard market rates. The city will issue a formal notice of funding opportunity so eligible developers can apply for gap financing for construction loans that last no more than three years.
Where the money would come from
Funds for the bridge loans would be drawn from state grants earmarked to accelerate downtown housing and infrastructure. The plan would tap into part of a previously promised $250 million infrastructure grant, of which the city has received $150 million so far. The use of those grant dollars is intended to jump‑start stalled projects and attract private lenders to follow with permanent financing.
Why the loan is needed
The mayor described the financing gap as a short‑term problem typical for downtown projects. High construction costs, particularly in central city locations, can make projects hard to “pencil out” when expected rent income does not offset the expense. The bridge loan is aimed at overcoming that temporary barrier so projects can reach a stage where traditional lenders will provide longer‑term financing.
Project history and risk of city action
The parcel at Van Ness and Stanislaus had been vacant for years. Before becoming an empty lot, it had housed a gas station that was demolished and had its underground tank removed. A local business owner initially sought to build a parking structure on the site but later entered a development agreement for housing. That agreement expired in 2019, and the current developer stepped in under the Uptown LLC name. In October 2024 the city issued a notice of default to Uptown LLC because of slow progress; the city granted an extension beyond the usual six months and required the developer to meet several conditions. The developer satisfied four city demands, and city officials say they remain optimistic about progress. City leaders also made it clear that if work stalls again, they may reclaim the property.
Stakeholders and next steps
A spokesperson for the developer declined to comment on the financing plan. The mayor will send the bridge‑loan proposal to the city council for approval. If approved, the city will post a formal opportunity for other downtown developers to apply for similar short‑term gap financing. The administration expects the loans to help several downtown projects move from planning to construction more quickly.
Broader context: The proposed bridge loans are part of a larger push to accelerate housing and reuse central city parcels that have sat empty or underused. The measure aims to reduce the risk for private lenders, increase construction activity downtown, and make better use of state infrastructure grant funds set aside for such efforts.
Frequently Asked Questions
Q: What property is affected?
A: The proposal focuses on the parcel at 1506 Van Ness Ave, an empty downtown lot where a 54‑unit apartment project is planned.
Q: Who is the developer?
A: The project is listed under Uptown LLC, with Lance Kashian and Co. as the development firm.
Q: What kind of loan is being proposed?
A: A market‑rate bridge loan lasting no more than 36 months, intended to cover short‑term financing gaps during construction.
Q: Where will the loan money come from?
A: Loan funds would come from state grants allocated to accelerate downtown housing, including part of a larger $250 million infrastructure grant from 2023; the city has already received $150 million of that amount.
Q: What happens if the developer stalls again?
A: City officials have said the city may reclaim the property if required construction milestones are not met.
Q: Will other projects be helped?
A: City leaders want to make similar bridge financing available to up to four other downtown projects, though sizes and recipients have not been named yet.
Key Features at a Glance
| Feature | Details |
|---|---|
| Location | 1506 Van Ness Ave (Van Ness Ave & Stanislaus St) |
| Project | 54‑unit market‑rate apartments with rooftop pool |
| Developer | Uptown LLC (Lance Kashian and Co.) |
| Proposed Loan | Market‑rate bridge loan, up to 36 months |
| Funding Source | State grants, including portion of a $250M infrastructure allocation (city has received $150M) |
| Risk Management | City may reclaim property if development stalls or milestones are not met |
| Next Steps | City council review and issuance of a notice of funding opportunity for eligible projects |
Deeper Dive: News & Info About This Topic
Additional Resources
- GV Wire: Will downtown Fresno lot finally become housing?
- Wikipedia: Downtown Fresno
- ConnectCRE: MonticelloAM closes $8.7M bridge loan on Fresno assisted living
- Google Search: assisted living financing Fresno
- Shopping Center Business: Gantry arranges $26M refinancing for retail center in Southern California
- Google Scholar: commercial real estate refinancing Southern California
- ABC30: Bitwise Industries downtown Fresno employees furloughed (WARN Act)
- Encyclopedia Britannica: WARN Act
- San Francisco Chronicle: High-speed rail private financing discussion
- Google News: California high-speed rail private financing
Author: Construction NY News
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