Capstone Closes Loan on San Diego Student Housing
- Jun 03, 2020
Capstone Development Partners has closed on financing for its second public-private partnership project with San Diego State University. The student housing developers originally secured a $23.5 million construction loan from Bank of America that covered the entire project cost, Chad Izmirian, Capstone’s senior vice president, told Multi-Housing News.
“Fortunately, we have a long-standing relationship with Bank of America and we were working with their team on this project prior to the pandemic,” Andy Summerlin, Capstone’s director of finance in the Denver office, told MHN. “The rapidly evolving situation required constant communication as there were obviously questions that needed to be answered about the school, their plans for future in-person classes as well as assumptions about the persistence of the pandemic and how that might impact living arrangements/preferences for students down the road.”
The 80,000-square-foot student housing project, VIVA 5750, will be located by the southern entrance of the campus at Montezuma Road and Campanile Drive. The four-story community will fit 182 beds for juniors, seniors and graduate students and will include a community kitchen, lounge spaces, two outdoor courtyards, a barbecue area, study rooms, business center and underground parking, Izmirian told MHN. The student housing will be built on land that’s ground leased to Capstone by the San Diego State University Research Foundation.
Capstone began planning for VIVA 5750 in 2018 and broke ground on the project in May and aims to have the on-campus housing ready by the fall 2021 semester. The developers tapped JWDA Architects and Cannon Constructors Inc. as part of its project team and worked with the university foundation throughout the process.
ADDING TO THE ACADEMIC PORTFOLIO
Capstone, who specializes in on-campus public-private partnerships, has worked with many other universities including Arizona State University, University of Chicago, University of South Florida and many others to build residence halls, dining commons and other academic buildings.
Capstone also has worked with San Diego State University previously in developing M @ College, a 124,306-square-foot student housing property mostly for sophomores that offers 327 beds through one-, two-, three- and four-bed floorplans. The developers delivered M @ College in October 2018 with four other student housing projects.