LOS ANGELES, CA (June 18, 2014) – Commercial real estate
investment banking firm George Smith Partners has successfully arranged $12.7
million in pre-development financing on behalf of its client, San Diego-based
Zephyr Partners, who will develop a full city block in downtown San Diego,
Calif.
The development is planned to include two 32-story towers
comprised of both residential and retail space, according to George Smith
Partners’ Principal Malcolm Davies.
“This development
site is downtown San Diego’s largest land acquisition this year, and is poised
to be one of the first downtown condo projects to move forward to
construction,” explained Davies.
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| Malcolm Davies |
Zephyr Partners acquired the full city block property
located between Seventh Avenue, Eighth Avenue, Broadway and C Street, for $21.1
million on Friday, June 13, according to Davies.
“The site is located in a fantastic sector of downtown that
is well-positioned for redevelopment,” noted Davies.
Upon completion, the development is planned to consist of
700 residential units and 60,000 square feet of anchored retail space. A leased
in-line retail center currently occupies the site, and Davies noted that the
land is not yet fully entitled.
“Obtaining financing for a development that does not yet
have final entitlements in place presented a challenge for our team,” explained
Davies.
“To combat this issue, we
worked to educate lenders regarding downtown San Diego’s master EIR and Zephyr
Partners’ vast experience in San Diego developments, demonstrating the firm’s
strength as both a borrower and a developer.”
According to Davies, Zephyr Partners has developed numerous
San Diego residential projects in recent years, including single family homes,
condominium projects, and multifamily communities.
“Drawing upon our extensive network of lenders, we were able
to identify a lender who understood the value of and demand for a development
of this magnitude in downtown San Diego, and was willing to provide financing
even in the absence of final entitlements,” he explained.
George Smith Partners arranged an interest-only loan with a
large interest reserve, priced at 6.5 percent for two years with a one year
extension.
For a complete copy of the company’s news release, please
contact:
Corynne Randel/ Jenn Quader
Brower, Miller & Cole
(949) 955-7940
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