The largest financing commitment is $59.5 million for Circa 37, a planned 306-unit apartment property on 10.5 acres in the Civita masterplan.
The one- to three-bedroom floorplans range from 630 to 1,400 square feet.
Colton Sudberry, Sudberry president, said Wells Fargo Bank and Cigna are providing the construction lending for Circa 37.
Dale Northrup, Wells Fargo Bank senior vice president, said in a statement that the launch of Civita is an important milestone for real estate development in San Diego.
“Residential construction has been at historic lows and we are pleased to participate in Circa 37, which is well-conceived and raises the bar for quality development in Mission Valley,” Northrup said. “It sets a fine precedent for all that will follow in Civita.”
When completed, Civita — being built on the site of an old rock quarry — will be a major mixed-use community with as many as 4,780 residential units and nearly 1 million square feet of retail, office, open and civic space.
Construction is now under way on the Civita’s first for-sale neighborhood, Origen by Shea Homes, a collection of three- and four-story row homes. The grand opening is for that project is scheduled for later this year.
The other new Sudberry project being financed is Palomar Airport Commons, where a $16.9 million construction loan was secured for the 184,000 square foot community shopping center at the southwest corner of Palomar Airport Road and El Camino Real in Carlsbad, on the site of the closed Olympic Resort Hotel and Spa.
Sudberry said Bank of America is also the lender for that Lowe’s-anchored project.
Mike Atkins, senior vice president and client manager for BofA, said the timing is excellent for launching the new Lowe’s-anchored center in Carlsbad. “Sudberry worked very hard to put together a project that is almost institutional grade in the quality of the investment,” Atkins said.
The loans that make up the remainder of the $164 million in funding are to refinance existing shopping centers.
These includes a $53.3 million refinance package for the 155,600-square-foot Village Walk at Eastlake, with Henry’s Farmers Market, Petco, TJ Maxx and Trader Joe’s as tenants. Ladder Capital Finance and Redwood Financial Group were the lenders on this Chula Vista center.
A $22.82 million refinance is being used for the 76,900-square-foot Marketplace in Santee, with Henry’s, U.S. Bank, FedEx, Starbucks and newly opened Via Moto as tenants. Cantor Fitzgerald is the lead lender.
The last piece of funding was an $11.5 million refinance for the Canyon Hills Marketplace in Lake Elsinore, with CVS Pharmacy and Stater Brothers as anchor tenants.
That loan was bankrolled by Cantor Fitzgerald and Wrightwood Capital.
Sudberry said he is expecting another $17 million loan on a property that he declined to identify until it closes.
So, is financing becoming any easier?
“It was easier than it was 18 months ago, but it has gotten a bit worse. We had a brief window and we were able to jump through it,” Sudberry said. “There are monies from life companies. Our $17 million loan is coming from a life company. It would be even more difficult if the life companies weren’t there.”
Despite the concerns, however, Sudberry said his future sentiment is buoyed by the loans he has already received.
“We are optimistic about the continued strength of the economy in our area and pleased to have major lending institutions validate that faith,” Sudberry said.