Wednesday, June 18, 2014

George Smith Partners Secures Pre-Development Financing for Full City Block of Downtown San Diego, CA


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.

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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