Fident Capital secured a $2.5MM construction loan for the development of a 7,230 SF retail center located in the Encanto neighborhood of San Diego, California. A regional bank provided the 65% LTC financing for a 4.25% rate.
The Opportunity Zone neighbors a major intersection and transportation hub in an undersupplied area. The project will provide some of the only new construction in the surrounding area and consists of a two-unit commercial building with an adjacent pad that will be leased to a national tenant.
Challenges to the project included a complete project stall associated with lender pulling back due to the general COVID-induced shutdown and stay at home orders. Re-marketing the deal after the pause saw a dramatically diminished pool of potential lenders due to global concerns surrounding the retail asset class, the small check size, and a lack of pre-leasing.