JV Secures $31M for San Diego Upscale Project
Developers will break ground this month, with completion slated for 2027.
Built Development Corp. and Ibex Ltd. have secured a $31 million construction loan for the development of Cuarto Apartments, a 74-unit upscale project in San Diego’s Bankers Hill neighborhood.
SteepRock Capital and Goodman Capital provided the floating-rate mezzanine and senior loan, respectively, in a transaction brokered by JLL Capital Markets.
The development is scheduled to break ground this month, after the demolition of the office building that currently occupies the construction site. Completion is slated for November 2027.
Under a regulatory agreement with the San Diego Housing Commission, 13 percent of the Cuarto Apartments units will be designated for households at various area median income levels.
The future Cuarto Apartments
The 11-story community will offer studio, one- and two-bedroom layouts. The upcoming 56,910-square-foot residential property will also feature 2,941 square feet of ground-floor retail space. Common-area amenities will include a rooftop deck with swimming pool, barbecue area, fitness center and bicycle parking.
Taking shape at 3636 Fourth Ave., the development is near interstates 5 and 8 and California State Route 163. Downtown San Diego is 2 miles south, while the city’s international airport is less than 4 miles west.
JLL Capital Markets Senior Managing Director Jeff Sause, Senior Director Christopher Collins, Director Chad Morgan, Associate Jacob Michael and Analyst Danny Ryan led the Debt Advisory team that worked on behalf of the borrowers in securing the construction financing.
As of November, multifamily development in metro San Diego included 62 properties under construction, set to add 11,840 units to the existing stock, according to Yardi Matrix information. More than half the units underway are Renter-by-Necessity and fully affordable properties, while the remaining assets are Lifestyle projects.
Last month, Hines, in partnership with Affinius Capital, Bank OZK, Related Fund Management and Heitman, started construction on the first phase of Riverwalk San Diego, a 200-acre mixed-use village within San Diego’s Misson Valley submarket.
