DJM Scores $93 Million in Financing as Construction Continues Unabated
- Jun 28, 2014
A major retail development project in Huntington Beach recently received a serious fund injection as developer DJM landed approximately $93 million in financing. The funds were arranged by George Smith Partners Principal and Managing Director Steve Bram and Senior Vice President David Pascale. The funding is divided between a $56.5 million senior loan and a $37 million mezzanine loan. DJM will be using the proceeds to continue the development process at its Pacific City project.
The 191,000-square-foot retail center is located near the Huntington Beach Pier, along Pacific Coast Highway, three blocks away from Main Street. It features a two-story open design that facilitates views of the nearby Pacific Ocean to the largest part of the property’s tenants. With only a small amount of preleasing necessary as part of the financing process handled by George Smith Partners, information regarding the property’s tenant roster is still rather scarce.
Set to debut in 2015, the retail component of Pacific City will include a wide range of lifestyle brands, popular dining spots and an Equinox fitness center. The property’s Lot 579 will be a marketplace-style arrangement featuring local and regional food vendors in the vein of San Francisco’s Ferry Building. Construction at the project began late last year on the lot that DJM had acquired back in 2012. The process will continue with no changes in the development schedule due to the securing of the two loans.
The Pacific City development project was approved back in 2004, and calls for a brand new mixed-use experience to be built in Huntington Beach on a 31.5-acre plot of land, offering new retail, residential units and a hospitality facility. Currently, DJM Capital Partners Inc. is in charge of development for the commercial/retail project, R.D. Olson Development is handling the construction of the eight story, 250-key hotel that will also include 5,800 square feet of meeting and banquet space. Crescent Heights is listed as the applicant for the 17.23-acre multifamily component of the development that would include 516 residential units.
Image courtesy of huntingtonbeachca.gov