2 CONDOMINIUM PROJECTS SHOW FAITH IN HOUSING FUTURE.

Byline: GREGORY J. WILCOX Real Estate

The two projects have just 30 units between them, so they won't fix the San Fernando Valley's housing shortage. And at two stories, tall they won't make an impression on the neighborhood skyline, either.

But the developments, both condominiums, underscore the financial community's faith in at least the short-term future of the local real estate market since new condos are a relatively rare commodity.

The Los Angeles office of Holliday Fenoglio Fowler L.P., one of the nation's leading commercial mortgage banking firms, arranged $3.4 million in financing that will help Pacific Northstar Properties LLC build the units in Studio City and Sherman Oaks.

For its part, Northstar is taking a stealth approach to their Valley foray and declined comment.

The developments are south of Ventura Boulevard in Studio City and Sherman Oaks, locations that puts both at the luxury end of the price scale, meaning they will be affordable to buyers earning a nice income.

And even though they are expected to be pricey, Jerry M. Wise, Holliday's senior director, doesn't expect the units to languish once they hit the market because of strong demand and tight supplies.

``I don't know that (the market) could absorb 300 units coming on at one time but the small amount that has been coming on is easily absorbed. There is not enough product for demand,'' Wise said.

``Everything that's been put up has been sold in between 30 to 60 days and most of it has been north of the boulevard.''

For example, the California Association of Governments estimates that Los Angeles County will need 37,000 new housing units per year through 2004. This kind of demand will continue to provide upward price and rent pressure in the multifamily market, Wise said.

His company arranged Pacific's $1.1 million land loan for Laurelwood Condominiums, a 21-unit project in the 11800 block of Laurelwood Drive in Studio City. The project is currently undergoing the city's plan check process and construction should start in the spring.

Both are infill projects, the kind of development now common in the Valley.

Tony Lucente, president of the Studio City Residents Association, said that his group always has concerns about density, traffic and the visual impact these kinds of projects have.

``I believe that all of these issues were addressed,'' he said.

The other project is Dickens Street Townhomes in Sherman Oaks, a nine-unit complex that is already under construction. Holliday helped secure $2.3 million in construction financing.

Wise said that all the units will have open floor plans, private patios, well-apportioned kitchens and baths, fireplaces, balconies in the master suites and a master bath with an oval tub and toilet alcove.

The kitchens will feature maple cabinets, granite counter tops and GE appliances.

``These properties are located in some of the most desirable residential communities in the Los Angeles Metropolitan Area,'' Wise said.

Jim Link, executive vice president of the Southland Regional Association of Realtors, said that projects no matter how small are welcome because there has not been much new condo construction over the past several years.

``I think its a case of available land in the Valley being pretty well built up. And where homes are being built the trend in the last several years has been to build larger single family homes rather than multifamily units,'' he said.