Affordable Housing Financing
Commercial Observer
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A pair of developers has secured a nine-figure financing package for an affordable housing project in San Diego. It’s the latest example of the lending activity in the space amid a historic national housing crunch. Also for today: Commercial mortgage-backed securities issuance is at its highest levels since 2021.
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— Tom Acitelli, Deputy Editor
Acore Leads $112M Financing for San Diego Affordable Housing Project
Some major real estate deals have gone down in the San Diego region this year, with a new nine-figure construction financing package for an affordable housing project as just the latest example. Los Angeles-based developer Impact Housing and partner Verbena Road Holdings have secured $112.2 million in financing for Mission Gorge, an unsubsidized, 483-unit modular affordable housing development at 6171 Mission Gorge Road, about four miles northwest of San Diego State University. Acore Capital provided an $85.2 million floating-rate, senior construction loan, while Ascendent Capital Partners provided a $27 million preferred equity investment. JLL Capital Markets’ Charles Halladay, Joseph Choi and Will Bond arranged the debt, representing the borrowers.
CMBS Issuance Hits 2021 Highs, Even If Office Health Remains Precarious
One of only two multifamily buildings in the Hollywood Hills featuring more than 100 units has traded hands, though at a slight discount from its most recent sale. Los Angeles-based developer and management firm Cityview has paid $35.5 million for Candela, a 112-unit property at 1950 Tamarind Avenue. The price is $5.2 million less than the $40.7 million that seller Raintree Partners acquired Candela for in 2018, property records show. The apartment complex is currently 96 percent occupied, Cityview CEO Sean Burton said in a statement. “Candela was a prime opportunity to acquire a well-located, highly amenitized asset significantly below replacement cost, making it an ideal fit for our value-add strategy,” Burton said.
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