Fident Capital secured a $20.7MM construction loan for the development of a 7-story, 94-unit multifamily project with 3,000 SF of ground-floor retail located in the burgeoning North Park submarket of San Diego. A private debt fund provided the non-recourse loan at 75% LTC.
The project offers a mix of studio and one-bedroom units, including five affordable units. Perched upon one of the highest points in San Diego, the upper floors provide ocean views to the Coronado Islands as well as views of Mexico and the San Diego skyline. Residents will enjoy the vibrancy of this North Park location that delivers an array of restaurants, coffee houses, unique shops, and a pedestrian friendly environment.
The client assembled the transaction off-market allowing a lower land basis than marketed land sales. This coupled with minimal parking, which eliminated the high construction costs associated with subterranean development, allow for more affordable rents, and epitomizes intelligent infill development in a highly supply-constrained submarket.
Challenges to the project included explaining the use of Visitor Accommodation units/zoning to increase density, defending the rationale in providing 13 parking spots for 94 units, and navigating the COVID-induced capital markets uncertainty with a non-recourse mandate. Additionally, a late-stage switch in general contractor presented an additional hurdle during close.