La Jolla Village Set to Grow with New Townhome Project

By Alex Girda, Associate Editor

San Diego–Financing is finally in place for the development of a new upscale multifamily community in San Diego. George Smith Partners has secured a $16.25 million non-recourse construction loan for the 18-unit ground-up project at Silver Springs Townhomes.

Silver Springs Townhomes

The GSP team was led by company Principal Jonathan Lee, Senior Vice President David Stepanchak, and Vice President Adam Candler. Eventually, the team secured the financing, sized to 65 percent of the total development cost, for a 24-month term. The loan is priced at PRIME plus 1 percent with a floor of 4.75 percent. According to Jonathan Lee, the financing process proved challenging due to the search for comparable price-per-square-foot sales. Ultimately, the company was able to gain the interest of several lenders and negotiate beneficial terms for all parties.

Silver Springs Townhomes will take shape on two parcels at 7601 Draper Ave. and 720 Silver St. in La Jolla. The lot is currently occupied by a single-story vet clinic and a U.S. Postal Service location that will be razed to make way for the new 41,881-square-foot development. The upcoming townhomes will offer opportunity in a supply-constrained, competitive market that will claim an estimated $2 million per residence.