A South Los Angeles church is turning part of its property into housing, backed by a roughly $15 million construction loan that will fund 62 new affordable apartments in Vermont Knolls.
The development, known as St Rest Phase One, will rise on land owned by St Rest Friendship Baptist Church at 706 W. 85th St. It is the opening move in a two-phase plan that could total 138 homes on the site, with the first phase targeted for completion in the fourth quarter of 2027.
According to Connect CRE, the approximately $15 million loan will cover construction costs for Phase One and marks the initial financing step in a broader redevelopment of the church campus. The outlet also reports that a future Phase Two is expected to deliver the remaining units along with a new worship and ministry space for the congregation.
A press release on Yield PRO details that the four-story Phase One building will feature 53 one-bedroom apartments and nine two-bedroom units, plus a second-floor courtyard and 27 covered parking spaces. In that announcement, Sunflower Bank regional president James Canepa said the bank is “excited to support the St Rest Phase One development,” while Logos’ Pastor Martin Porter called the loan closing “an important milestone” for the Vermont Knolls neighborhood.
Faith Partners and the Development Model
Logos Faith Development describes itself as a mission-driven firm that helps churches convert underused land into affordable housing. The company’s materials highlight a multi-project pipeline across Southern California and emphasize partnerships with congregations aimed at stabilizing church finances while creating new homes, a strategy this South L.A. deal closely follows. Logos Faith Development has pointed to similar church collaborations in recent project announcements.
How Approvals Could Move Faster
For the 706 W. 85th St. site, Logos previously filed its plans and indicated it would rely on Mayor Karen Bass’ Executive Directive 1 to streamline the city’s review process, according to local coverage when the project first surfaced in 2024. The Real Deal noted that the filing also makes the project eligible for state-level policy changes designed to encourage housing on land owned by churches and colleges, a regulatory tool that developers across Los Angeles have increasingly leaned on.
Timeline and Next Steps
Construction on Phase One is expected to start soon, with completion still aimed for the fourth quarter of 2027, according to the project announcement. Phase Two, which would add roughly 76 more units along with the church’s new worship space, is not included in the current financing package and will require separate approvals and funding, Connect CRE reports.
The deal is part of a growing pattern in South L.A., where private lenders and mission-driven developers are teaming with local congregations to open up church land for housing. That trend includes Logos’ work with modular builder Model/Z on nearby projects intended to accelerate delivery timelines. Model/Z and Logos have promoted modular construction as a way to keep both costs and schedules in check across the region.
