Ascent Developer Solutions, a private real estate lender, has leased 22,000 square feet at Douglas Emmett's office building at 15821 Ventura Boulevard in Encino, expanding its Los Angeles footprint by 13,000 square feet. The move comes as the firm crosses $3.7 billion in originations just over two years after its launch, signaling rapid growth in the competitive private lending space.
The new space at the Encino location puts Ascent closer to major development activity in Los Angeles County. The San Fernando Valley remains a hotbed for mixed-use and residential projects, particularly as developers seek faster funding timelines than traditional banks offer. Private lenders like Ascent fill that gap, providing capital for ground-up construction, acquisitions, and repositioning deals where speed and flexibility matter more than rock-bottom rates.
Ascent's $3.7 billion achievement in two years reflects strong demand for non-bank lending in Southern California. The market has pulled back from pandemic-era peaks, but construction financing remains active for sponsors with strong track records and well-underwritten projects. Private lenders capture market share by closing loans in weeks rather than months and adapting terms to deal specifics that banks won't touch.
The Douglas Emmett lease also signals confidence in office space demand for professional services. While office occupancy remains volatile across the region, Class A buildings in affluent submarkets like Encino have held up better than downtown L.A. or other secondary markets. Ascent's choice reflects the firm's growth trajectory and need for talent retention in a competitive hiring environment.
For borrowers in L.A., Ascent's expansion matters. More office capacity means more lending professionals on the ground, faster local decision-making, and deeper relationships with developers and sponsors. Borrowers can expect quicker responses, better local market knowledge, and potentially more competitive terms as the firm scales operations.
For Douglas Emmett and other landlords in Encino, the lease demonstrates ongoing demand from financial services and professional services tenants. The submarket's proximity to major employment centers and residential populations keeps it attractive despite broader office challenges. Ascent's 13,000-square-foot expansion also validates the building's positioning for growing companies rather than shrinking ones.
The broader context: private lending in real estate remains resilient even as rates stay elevated and transaction volumes remain below pre-2022 levels. Ascent's growth outpaces traditional bank lending at many shops, particularly for construction and value-add deals. The firm's hiring and real estate expansion suggest confidence that the private lending market will remain robust through 2024 and beyond.
Encino's office market has seen renewed interest from financial services firms in recent years. The location offers space, parking, and proximity to West L.A. and the broader Valley, making it practical for firms that need to attract and retain talent outside downtown L.A.'s congested core.