HFF Secures $165M Refi for 2 San Diego Communities

By Alex Ciorogar

Vive on the Park

HFF has secured $165 million in short-term, first-mortgage debt to refinance two new luxury apartment communities in San Diego, on behalf of developer and owner, Sunroad Enterprises. The financing was structured in two pieces, with Mesa West holding the $145 million A-Note and New York-based real estate investment advisor Clarion Partners holding the $20 million B-Note. Tim Wright and Aldon Cole in HFF’s San Diego office arranged the transaction.

The five-year, non-recourse loan will  be used to refinance the 253-unit Ariva and the 302-unit Vive on the Park, the two most recent apartment developments in Sunroad’s 40-acre master planned community Sunroad Centrum. The community is part of the San Diego Spectrum Center, the redevelopment of the former 232-acre General Dynamics aerospace facility in the Kearny Mesa submarket. Upon completion, Sunroad Centrum will include 1,622 multifamily units and 856,000 square feet of commercial office space.

Ariva, which consists of two four-story, podium-style buildings, was completed in 2014 and leased up by the sponsor in less than 16 months. The seven-story Vive on the Park was recently completed and is 52 percent leased, after being on the market five months. 

The corporate headquarters of San Diego Gas and Electric, Northrup Grumman, Kaiser Permanente and Solar Turbines are all nearby.

Earlier this week, HFF also secured four 10-year, fixed-rate securitized loans totaling $145.7 million for four multifamily properties in California. 

Image courtesy of Mesa West Capital